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Research Proposal - Dissertation Example

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Research Proposal

As a consequence, the globalisation commitment entered into by countries in multilateral agreements was met with slow progress and considerable suspicion by political and civic groups. Businessmen were quick to see the advantages, however, of gaining access to new markets opening up across borders. In deciding upon entering a foreign market, a firm takes on considerable risks, but foresees that there is an opportunity to earn considerable returns as well. It will therefore base its decision on whether or not there is a favourable trade-off between risks and returns – that is, whether the chances of earning returns significantly higher than it would in the local market would exceed the risks that it may be facing. This is the crux of the normative decision theory. On the other hand, behavioural theory suggests that a firm may also consider entry into foreign markets depending on the trade-off between the relative availability of resources in the targeted site compared with the home site, as against the degree of control that may be exercised, which is seen to diminish the more distant the host site (Agarwal & Ramaswami, 1992). In the course of this study, the purpose is to gain possible insight into the evolving dynamics involving the entry of UK firms into foreign markets, particularly (though not exclusively) emerging markets. It expects to develop new insights into stakeholders’ perceptions about those considerations that would tend to favour one mode of expansion of foreign direct investment over another, the implications on control and risk, and the nature of the target market in relation to the home economy. 2. Objectives This dissertation aims to accomplish the following objectives” 2.1 To determine the impact of firm-specific factors on the choice of entry mode into a foreign market; 2.2 To determine the impact of host country factors on the choice of entry mode into a foreign market; 2.3 To determine the impact of home country factors on the choice of entry mode into a foreign market. 2.4 To determine whether or not the location of the firm within an industrial district has any bearing upon the choice of entry mode. 3. Research questions In order to accomplish the objectives set forth in the preceding section, the dissertation shall seek to provide answers to the following research questions: 3.1 What are the effects of the following firm-specific factors on the choice of entry mode of a UK firm into a foreign market, namely: 3.1.1 Firm size; 3.1.2 International business experience; 3.1.3 Organizational culture? 3.2 What are the effects of the following host country factors on the choice of entry mode of a UK firm into a foreign market, namely: 3.2.1 Cultural distance; 3.2.2 Country risk; 3.2.3 Market attractiveness? 4. Critical Review of Literature 4.1 International marketing strategy The various modes of entry into a market include exporting, joint venture, sole venture, licensing and franchising, and more conventionally, the internet and international agencies (Wind, Douglas & Perlmutter, 1973; Hisrich, 2009; Pride &Ferrell, 2010). It is generally acknowledged in studies on entry modes that these modes vary more prominently with respect to level of control exercised by the firm over its offshore subsidiary, either whole or ...Show more

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THE IMPACT OF FIRM RESOURCES AND HOST COUNTRY SPECIFIC FACTORS ON INTERNATIONAL ENTRY MODE STRATEGY 1. Introduction Research Aim This study aims to determine the factors that influence the choice of entry modes that U.K firms may explore in their effort to establish a presence in a foreign market…
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