* *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.