2
Modes of International Business
New York Stock Exchange, New York, USA ∗
CHAPTER OBJECTIVES
The present chapter discusses the various modes through which international business is operated. In particular, the chapter attempts to:
- Explain the factors influencing the choice of a particular mode of international business.
- Describe the features, merits, and demerits of direct and indirect trade as well as counter-trade.
- Evaluate various forms of contractual entry mode.
- Distinguish between foreign direct investment and foreign portfolio investment.
- Explain the nature and forms of mergers and acquisitions and the motivations behind such moves. ...
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