Entry mode Advantage Disadvantage
Exporting Ability to capitalize on experiences in location selection -High transport costs
-Trade barriers
-Problems with local marketing agents
Turn-key contracts Ability to earn returns from process technology skills in countries where FDO is restricted -Creation of efficient competitors
-Lack of long-term market presence
Licensing Low development costs and risks -Lack of control over technology
-Inability to realize location and experience curve economies
-Inability to engage in global strategic coordination
Franchsing Low development costs and risks -Lack of control over quality
-Inability to engage in global strategic coordination
Joint ventures -Access to local partner’s knowledge
-Shared development costs and risks
-Politically acceptable -Lack of control over technology
-Inability to engage in global strategic coordination
-Inability to realize location and experience curve economies
Wholly owned subsidiaries -Protection of technology
-Ability to engage in global strategic coordination
-Ability to realize location and experience curve economies -High costs and risks