publication . Article . 2002

An Internalization Approach to Joint Ventures: Coca-Cola in China

Vincent Mok; Godfrey Yeung; Xiudian Dai;
Open Access
  • Published: 01 Oct 2002
  • Country: United Kingdom
In the presence of high transaction costs due to market imperfections, it is normally less expensive for multinational corporations (MNCs) to conduct their business activities in new markets through their internal corporate structures rather than by relying on the markets. Based on a case study of Coca-Cola's entry into the Chinese market, this paper tests the applicability of internalization theory to explaining the entry mode choices of MNCs in developing countries. Internalization theory reveals the economic rationale that was behind the changes in Coca-Cola's modes of entry as it moved from franchising to joint ventures (JVs) with selected local partners, an...
free text keywords: HD28, H1, Internalization, media_common.quotation_subject, media_common, Internalization theory, medicine.medical_specialty, medicine, Multinational corporation, China, Developing country, Coca cola, Transaction cost, Social venture capital, Market economy, International trade, business.industry, business
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