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| Author: | Mudambi, R. Mudambi, S.M. |
| Title: | Diversification and market entry choices in the context of foreign direct investment |
| Journal: | International Business Review
2002 : FEB, VOL. 11:1, p. 35-55 |
| Index terms: | DIVERSIFICATION FOREIGN INVESTMENT MARKET ENTRY MULTINATIONAL COMPANIES |
| Freeterms: | FDI |
| Language: | eng |
| Abstract: | Multinational enterprises (MNEs) consider many factors when making decisions in the context of foreign direct investment (FDI). The MNE must decide whether to diversify or to concentrate on its main line of business (LOB). It must also decide whether to enter into a foreign market through a greenfield or acquisition strategy. This paper analyzes both decisions. It introduces a selection model, in which the diversification choice and the entry mode choice are made sequentially, and therefore related. |
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