ABSTRACT
The forms of institutional involvement employed by MNEs in international markets range from spot market transactions at one extreme to hierarchical transactions at another. This diversity in the forms of foreign investment begs the question as to the factors that determine the MNE’s choice of international market entry modes. This chapter seeks to examine how the literature has addressed this issue. In addition, emphasis will be placed on the theories that attempt to explain the determinants of the MNE’s mode of international production in developing countries.
