corruption and its effect on FDI in Russia by manufacturing SMEs

What is it about?

How corruption and weak law enforcement affect entry mode selection by foreign manufacturing SMEs in Russia

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Why is it important?

Large sized foreign manufacturers can largely avoid corrupt practices by government officials in developing markets. That is because governments in these countries would have sufficient interest in sufficient FDI flows. Therefore they can choose entry mode based on other than this considerations (economic, legal, etc.). Foreign SMEs in markets such as Russia should however, consider, this condition (corruption) when making decisions on their entry mode choices as they would not have government support rendered to larger firms

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