Abstract
The relationship between repatriations risk and modes of entry continues to interest researchers and practitioners alike. Frequently the structure of functions necessary to develop an efficient and effective international organization are determined by the mode of entry used. Repatriations risk in less developed countries (LDCs) is still a reality especially in light of their increasing debt burden. The objective of this study was to determine whether U.S. manufacturing firms used exporting instead of licensing as a hedge against repatriations risk in developing country markets. Using time-series (1973-86) and cross-sectional data (20 nations), the findings suggest that exporting was used to hedge against repatriations risk in LDCs.
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