Motives for FDI and Collaborative Ventures
14.3 Explain the motives for FDI and collaborative ventures.
The ultimate goal of FDI and international collaborative ventures is to enhance company competitiveness in the global marketplace. Various motives explain why firms pursue these entry strategies. In Exhibit 14.4, we classify the motives for FDI and collaborative ventures into three categories: market-seeking, resource- or asset-seeking, and efficiency-seeking.18 In many cases, firms aim to satisfy several motives simultaneously. Let’s examine these motives in more detail.
Exhibit 14.4
Firm Motives for Foreign Direct Investment and Collaborative Ventures
Market-Seeking Motives
Managers may seek new market ...
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