The decision maker uses the same entry mode for all foreign markets. The following are the examples of political issues: According to the content there are basically three forms of FDI: As Albanian economy tends to grow, the prospects and opportunities of multinational enterprises MNEs to invest in Albania for a long-term period has increased also.
Organizations with investments in such opaque countries as Zimbabwe, Myanmar, and Vietnam have long-term experiences about how the political risk affects their business behaviors Harvard Business Review, By taking into account all of these factors, the aim of this study is to offer a new perspective by the case studies of foreign telecommunications companies, which form the majority of MNEs in this field, by finding the most significant determinants before entering into Albania, with a successful entry strategy and crucial consideration of FDI in Albania.
The decision maker uses a workable entry mode for each foreign market, which means that the manager use different entry modes depend on the time stage or the business stage. Praveen Parboteeah, John B.
Political Issues[ edit ] Political issues will be faced mostly by the companies who want to enter a country that with unsustainable political environment Parboteeah and Cullen, However, after the transition to democracy sincethe country has taken a long way in terms of economic, political and social life Ministry of Economyp.
It is rarely to see a small or medium-sized company use this approach. FDI takes place when a firm acquires ownership control of a production unit in a foreign country.
University of Maryland University College, http: The performance of this selection could not be calculated, because it highly depends on the luck of the manager. In the last years Albania has entered the free trade agreements with Balkan Countries creating the opportunity for trade throughout the region.
Complementary skills and resources Another important criterion is that the partners need to contribute more than just money to the venture Geringer and Michael, The "Open-door" policy of China Deng, ; 3.
Location of Albania in itself offers a notable trade potential, especially with EU markets, since it shares borders with Greece and Italy. Besides these three rules, managers have their own ways to select entry modes. For example, as the first step to international business, companies tend to use exporting.
The companies use this rule as the entry mode selection ignore the differences of individual foreign markets. It provides a successful Albanian business experience for the new comers in mobile telecommunications industry. If the company could not generate a mature market research, the manager tend to choose the entry modes most suitable for the industry or make decisions by intuition.
As Albanian economy has changed from a centrally planned to a market oriented one, FDI is seen as an important component of the transition process toward a market-led economic system, since it contributes to the development of a country through multiple channels Kukeli, et al.
Choosing a Partner for International Strategic Alliances[ edit ] Strategic compatibility The partners need to have same general goal and understanding in forming a joint venture.
Each partner must contribute some skills and resources that complement for another. It is crucially important to find the determinants and factors that affect multinational firms when deciding on their entry modes, in order to successfully compete in the Albanian mobile telecoms industry.
There are four operators in these industries; two of the leading firms expand rapidly in Albania by utilizing successful and aggressive entry strategies, and the other ones are new entries in Albanian market. Demirel finds all of these changes to form the strengths of Albania in terms of FDI.
This approach is common in large firms, because the research requires resources, capital and time.
With its developing market economy, Albania offers many opportunities for investors-property as labour costs are low, the young and educated population is ready to work, and tariffs and other legal restrictions are low in many cases and are being eliminated in some others Albinvest, The differences in strategy produces more conflicts of interest in the later partnership Lilley and Willianms, A political decisions will affect the business environment in a country and affect the profitability of the business in the country Click, This approach means that the company systematically compared all of the entry modes and evaluated the value before any choice is made.
The politically jailing of Mikhail Khodorkovsky, the business giant, in Russia Wade, ; 2. The corrupt legal system in many countries, such as Russia Samara, Three different rules of entry mode selection[ edit ] The following introductions were based on the statement of Hollensen: Essentials of global marketing.
The Ukraine disputed elections resulting in the uncertain president recent years Harvard Business Review, ; 4. In his study Demirel emphasizes that Albania has one of the most friendly investment environments in the region of the South- Eastern European Countries SEECs with her impressive economic performance in the last decade, liberal economic legislation, rapid privatisation process and country specific advantages.
Strategic international management 5th ed.Foreign market entry modes or participation strategies differ in the degree of risk they present, the control and commitment of resources they require, and the return on investment they promise. There are two major types of market entry modes: equity and non-equity modes.
The non-equity modes category includes export and contractual. Port Manteaux churns out silly new words when you feed it an idea or two. Enter a word (or two) above and you'll get back a bunch of portmanteaux created by jamming together words that are conceptually related to your inputs. For example, enter "giraffe" and you'll get back words like "gazellephant" and "gorilldebeest".
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