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What specific factors could cause a firm to reject exporting as an entry mode?
Zeezhammadi
There are several factors that could cause firms to reject exporting as an entry mode, including the presence of trade barriers, logistical issues, and distribution issues. Firms facing high tariff or nontariff barriers may find host country production preferable to home country production. Logistical considerations may also affect the desirability of exporting. For Example, the higher transportation costs associated with exporting, and the longer supply channel and difficulty communicating with customers may encourage a firm to choose an alternative entry method. Finally, firms that face difficulty finding appropriate distributors may turn to one of the other entry modes.
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