Market Entry Decisions

Entry into international markets involves several levels of risks. These are political, economic and non- systemic (specific) risks of industry and positioning. Success in international business depends upon controlling and reducing these risks. The international experience of controlling these risks is not satisfactory. Companies, that have been very successful in the national market, stumble in the international markets. This paper first looks at the theory of risk management across different levels, and then looks at empirical validation across stylized facts by analyzing the success and failure of 12 MNCs operating in the post liberalization era of the Indian Economy.