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Choice of location and mode: the case of Australian investors in the UK

  • Ecology
  • Geography


Internationalising firms must choose what foreign markets they will enter and in what sequence. Once the markets have been identified they must decide how they will service each market. If they choose to establish a business in a particular market they must decide whether to take over an existing firm or to establish a new one, and whether to joint-venture with another firm. This study examines the decision making of Australian manufacturing subsidiaries in the UK. The results reveal that environmental familiarity is important in the choice of location, transportation costs influence entry mode, technological and demand factors determine the choice of acquisition or greenfield entry and a desire for control leads firms to eschew joint-ventures.

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