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Explain entry-exit theory

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Reference no: EM133183472

Nissan built its factory in Indonesia at the beginning of the New Order period. However, in the early 1990s, Nissan moved its factories from Indonesia to other countries. In the early 2000s, Nissan rebuilt its factories in Indonesia.

  1. One expert stated that Nissan's decision to enter, exit, and then re-enter the Indonesian market was based more on the personal sentiments of the CEO or major shareholder. How to explain this based on Entry-Exit theory/ Entry-Exit Strategy?
  2. Another expert stated that when Nissan declared moving its factory from Indonesia, it showed that Nissan had lost in the competition. Meanwhile, when Nissan returns to build a factory in Indonesia, it is certain that Nissan has an advantage in the competition. Is that true? How to explain this?

Reference no: EM133183472

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