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Essay / Research Paper Abstract
8 pages in length. The variables that determine entry modes for multinationals investing in an emerging market are both grand and far-reaching; indeed, no individual element can be considered a single deciding factor. When examining the most appropriate entry mode – such as exporting, contract manufacturing, the multinational firm or technology licensing in a unified framework – multinationals must consider the issues of diversity, globalization and risk management. Bibliography lists 10 sources.
Page Count:
8 pages (~225 words per page)
File: LM1_TLCMultN.rtf
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can be considered a single deciding factor. When examining the most appropriate entry mode - such as exporting, contract manufacturing, the multinational firm or technology licensing in a unified
framework (Chung, 1999) - multinationals must consider the issues of diversity, globalization and risk management. The diversity inherent to globalization is an aspect of multinational business no company can afford
to ignore if expectations are to move forward into the new millennium. "Businesses when entering foreign markets must Think Globally, Act Locally, effectively using the concept of the international
product life cycle, and improve value chain activities to sustain their competitive advantages" (Chen et al, no date). Upon referencing Michael Porters 1990 definition of globalization, one can readily
surmise that the benefits can be quite significant to businesses that seek foreign markets in which to sell or manufacture. If one were to apply the Porter Model to
the myriad considerations of globalization, one would immediately understand how and why this particular system would prove effective in determining the entry mode any given company may enact as a
player in global economics. Within the five forces of Porters Model resides the formula that can help an organization realize its financial shortcomings when it comes to diversification and
competition. 1. Factor Conditions : The nations position in factors of production, such as skilled labor or infrastructure, is necessary to compete in a given industry. 2. Demand
Conditions : The nature of home-market demand for the industrys product or service. 3. Related and Supporting Industries : The presence or absence in the nation of supplier industries
and other related industries that are internationally competitive. 4. Firm Strategy, Structure, and Rivalry : The conditions in the nation governing how companies are created, organized, and managed, as
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