Question

we typically focus on firms from well-developed economies entering markets less developed economies. Do firms form less- developed economies have a chance of success if they enter developed markets, such as the united states? what competitive advantage could a firm from a less- developed economy rely on in entering developed markets? what would likely be the best entry mode?

Answer 1

Yes, the firms from less-developed economies have a chance of success if they enter developed markets such as the United States. If these companies rely on their core advantages then they have a chance of success. This is because labor is cheap in these economies as compared to developed nations.Taking local employees for production in these countries can help in increasing production level. Thus, relying on labor intensive production which is also their comparative advantage can help these economies excel in the developed world.

The best entry mode for these companies in the starting forming a joint venture with foreign companies. This venture can help in providing them the brand name and marketing cost will be reduced. Thus, initially they should form joint ventures with companies of developed nations.