Foreign Direct Investment

TABLE OF CONTENT
CHAPTER 1 2
1.1 INTRODUCTION 2
1.2 RESEARCH QUESTION 2
1.3 METHODOLOGY 3
1.4 THEORY REVIEW 5
CHAPTER 2 7
2.1 COMPANY PROFILE 7
2.2 CARLSBERG'S GLOBAL ENTRY STRATEGIES 8
2.3 CARLSBERG IN RUSSIA 10
2.4 CONCLUSION 12
CHAPTER 3 13
3.1 CARLSBERG'S ENTRY MODE IN THE LIGHT OF RUSSIAN INSTITUTIONAL       ENVIRONMENT 13
3.2 CONCLUSION 13
4. FINAL CONCLUSION 13

Chapter 1

1.1 Introduction

Emerging markets became important players on the global scale. Entry into emerging economies by western multinationals has been driven by competitive pressures in their home countries . FDI literature defines several FDI-motives, which defined as market-, resource, strategic asset-, and efficiency –seeking investments . However, it is acknowledged, that uncertain environment in emerging countries poses serious challenging for western companies while considering investment opportunities . When operating in a developing country or emerging market the surrounding environment is quite different from developed countries and often firms are exposed to higher levels of market failures and uncertainty, which they need to overcome. Multinational enterprises entering transition economies have to adjust their strategies to the local institutions. Countries with the former planned economy are given a particular concern. Institutional framework in these countries is only partially reformed, high level of instability and rapid implementation of new reform programs that lead to "high transactional costs for economic agents " .

One of these countries is Russia, that " at the opening if new millennium…looms on the horizon as an immense opportunity for investors, domestic and foreign alike " . There is an increased interest from foreign investors in the Russian economy, which has seen a continuous growth over the last years, quickly rebounding from the 1998 financial crisis. However, throughout the 90's and up to this date the inflow of FDI to Russia has remained... [continues]

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