The mode of entry of a multinational enterprise (MNE) is a function of its objectives and the institutional and business context of the host country. Using a three-level analysis, this essay will discuss the determinants of a firm's entry mode decision by focusing on the trade-offs between joint ventures, acquisitions, and greenfield. Entry methods can be classified based on the equity invested by multinationals when entering the market (BarkemaiandiVermeulen ,i1998). Joint ventures (JV) are co-ownership contracts with a local player, thus providing access to the market by proxy. Both Greenfield and Acquisitions are equity-intensive modes of entry. Greenfield involves the creation of a new subsidiary, which may be wholly or co-owned by a partner with complementary assets, while an acquisition is the purchase of a local business by the multinational company, allowing it thus direct access to the host market.1. COUNTRY DETERMINANTS The mode of entry of a multinational enterprise depends on the institutional framework of the host market. Institutions, responsible for enforcing property rights and the rule of law, oversee market mechanisms (North, i1990). Yet emerging market institutions often fail to promote efficient transactions, thereby limiting firms' ability to acquire necessary inputs through trade (Meyer et al., i2009). The state's position towards FDI will dictate the behavior of the multinational. It can intervene in the market to protect strategic companies, thereby preventing multinational companies from entering through new facilities or acquisitions. Conversely, a state may actively seek FDI and leverage its control over the rule of law to grant preferential treatment to foreign firms. Throughout Sakhalin II, the Russian government encouraged FDI by reducing the tax obligations of Shell, Matsui and Mits...... middle of document ...... 1996. Multinational Enterprise and Economic Analysis. Cambridge University Press.• Hofstede, G., 2003. The consequences of culture: comparing values, behaviors, institutions and organizations across nations, second edition. ed. SAGE Publications, Inc., Thousand Oaks, California. • Kogut, B., Singh, H., 1988. The effect of national culture on the choice of entry mode. J. Int. Bus. Stud. 19, 411–432.• Meyer, KE, Estrin, S., Bhaumik, SK, Peng, MW, 2009. Institutions, resources and entry strategies in emerging economies. Strategy. Manage. J. 30, 61–80.• North, DC, 1990. Institutions, institutional change, and economic performance. Cambridge University Press, Cambridge; New York. • Slangen, A., Hennart, J.-F., 2007. Greenfield or acquisition entry: A review of the empirical literature on modes of establishment abroad. J. Int. Manage. 13, 403-429. doi:10.1016/j.intman.2007.08.001