由於全球化的趨勢使對外直接投資( Foreign Direct Investment )扮演著重要的角色，其中「併購(Mergers and Acquisitions, M&A)」及「籌建新廠(Greenfield)」此兩種進入模式至今日益重要，因此本論文針對此兩種進入國際市場的方法進行探討。與既存文獻不同的是本論文將既存文獻之數量競爭改成價格競爭，且商品存在異質性，以此來建立本文之基本模型。本論文主要討論兩個問題：
若再加入籌建新廠之進入模式考量時，結果發現此時進入海外市場之決策會受到「地主國市場基本需求」、「廠商生產財貨的單位成本」與「廠商間財貨之替代性」之變動影響。除了在籌建新廠之額外成本大於併購之額外成本的前提下，國外廠商本身之單位生產成本變大時，會導致國外廠商以併購之方式進入地主國市場的動機變大之外；其他因素若變大時，皆以籌建新廠為進入模式之可能性較大。 The choice of appropriate mode of entry inteo new markets – between Greenfield investment and merger or acquisition (M&A) – is a key strategic decision for firms. This paper builds on the approach taken by Görg (2000), modifying Cournot model to Bertrand model and product heterogeneity to discuss the following questions:
1.Which is the best choice when a foreign firm enters host country via M&A, acquiring an existing indigenous high-technology firm or low-technology firm?
2.What is the optimal choice between greenfield investment and acquisitions for foreign firms?
Substitution of goods among firms and unit cost of production will affect a foreign firm’s entry mode when it chooses to enter host country via M&A. When substitution of goods between a foreign firm and an existing indigenous high-technology firm exceeds critical value, a foreign entrant will merge with low-technology firm. A foreign firm will merge with high-technology firm if substitution of goods between a foreign firm and low-technology one.
If unit cost of production of high-technology firm exceeds critical value, a foreign firm will merge with host country’s low-technology firm. If unit cost of production of low-technology firm increases, foreign firms will merge with host country’s high-technology firm.
A foreign firm’s strategy will be influenced by host country’s basic demands, unit cost of production and substitution of goods among firms when it decides between greenfield investment and acquisitions. Findings of most cases suggest that a foreign firm choose greenfield investment for entering host country market.