FDI can be a good entry strategy for many firms in developing countries because it is less risky. These ventures are also more likely to develop new products and services, which will lead to more jobs and increased exports down the line.
REASONS FOR FAVOR
The reason a firm will favour FDI over exporting as an entry strategy is that it’s often less risky, leading to success rates of about 20% higher than those of exporting strategies. One major benefit of FDI is that it leads to opportunities for startups and innovation, creating new products or services that then increase exports down the line.
Blogging: Why a Firm Will Favor FDI over Exporting as an Entry Strategy Blogging __
Description: __ The reason a firm will favour FDI over exporting as an entry strategy is because it’s often less risky, leading to success rates of around 20% more likely than those from exporting strategies.