Goals and objectives of the firm, such as desired profitability, market share, or competitive positioning.
The degree of control the firm desires over the decisions, operations, and strategic assets involved in the venture.
The specific financial, organizational, and technological resources and capabilities available to the firm (for example, capital, managers, technology).
The degree of risk that management can tolerate in each proposed foreign venture relative to the firm’s goals.
The characteristics of the product or service to be offered.
Conditions in the target country, such as legal, cultural, and economic circumstances, and the nature of business infrastructure, such as distribution and transportation systems.
The nature and extent of competition from existing rivals and from firms that may enter the market later.
The availability and capabilities of partners in the market.
The value-adding activities the firm is willing to perform itself in the market and what activities it will leave to partners.
The long-term strategic importance of the market.