ja_mageia

Context

The firm must be seeking greater proximity to the foreign market as well as access to inputs and qualified labour (and affordable too) for it to establish formal operations. The firm has sufficient financial resources (or access to capital), knowledge of the industry and target market and key attributes that will help it maintain adequate control of operations in the host country. Investment incentive measures, the fiscal environment and property rights regulations in the host country are favourable to investment.

Recommended penetration strategy:

• Acquisition
• Foreign direct investment
• Greenfield