Complete 6 pages APA formatted article: Global Strategy and Multinationals Entry Mode of Choice.

Complete 6 pages APA formatted article: Global Strategy and Multinationals Entry Mode of Choice. The research question that is posed is the factors that lead to the entry of multinationals into foreign markets and the specific entry strategies that these multinationals adopt when entering these markets. The authors point out that, “The geocentric approach outlined by Perlmutter provided a succinct explanation for the existence of and benefits attached to managing subsidiary units not as a portfolio of independent units but as an interdependent network.” (Hwang, 1991). Hence the emphasis is on the strategy of multinationals in enhancing the profits of the company at large and not necessarily those of the subsidiary unit.

The article makes very relevant points about the nuts and bolts of decision making when it comes to entry into foreign markets. The article is an important contribution to the existing literature on how multinationals base their decisions on which markets to enter and the factors that go into this decision making process. For instance, the entry strategy of multinationals into a specific market might be dictated by considerations of geography and to counter completion from its international rivals. This is the strategy that the cola majors, Coke and Pepsi use to enter specific markets and the entry mode is often dictated by factors that include the rival’s business strategy and the geographical advantage of operating in a specific market.

The article tests the validity of the framework used in decision making by undertaking firm-level research by an empirical method that focuses on the micro as well as the macro factors. To quote from the article, “We test the importance of each variable in differentiating among distinct entry modes. the aim here is to gain a better choice.&nbsp.

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