sses on the types of policies such as capital controls, intellectual property laws, monetary and etc. that would restrict the firms desired level of entry modes. Some evidence quoted includes the Poitiers Incident of 1983 by Hood and Truijens (1993) where French authorities boycotted Japanese VCRs market penetration, Kenya’s internal export compensation, and South African two tier currency restriction to foreigners by Economic Intelligence Unit (1993b).Another moderator factor is firm size restriction that limits the firm to commits on higher resources and ownership, and forced to resort to less desired entry modes. Then, corporate policy or the historical precedence does influence the undertaken mode of entry compare to the desired level.4.4 Situational influences on mode choicesThe other method that Driscoll discussed in the article is on the situational influences that affects the firms desire level of entry mode. The two main category include firm factors that relates to the firms competitive advantage or skills, product or industrial experience, and strategic approach developed; and another factor is environmental that links with demand and competitive conditions, political and economic issues, and social cultural characteristics in the foreign market.Some of the evidence discussed under firm factors where a company that has firm-specific advantage over others will choose a mode choice that gives more control. Hymer (1960); Kindleberger (1969) quoted that when product differentiation through R&D exists, firms will seek to establish control over these advantages and protect them from dissemination through the use of investment mode of entry.Then, experience and exposure of a firm in international marketing is another crucial firm factor that influences mode choice. This is in agreement with Buckley and Casson (1985) that states that experience reduces cost and risk in the serving market and increases the resource commitment of...
