The optimal choice of entry mode depends on the firm’s strategy. When technological know-how constitutes a firm’s core competence, wholly owned subsidiaries are preferred, since the best control technology. When management know-how constitutes a firm’s core competence, foreign franchises controlled by joint ventures seem to be optimal. When the firm is pursuing a global standardization or transnational strategy, the need for tight control over operations to realize location and experience curve economies suggest wholly owned subsidiaries are the best entry mode.