A factor endowment approach to international market selection


Management & Entrepreneurship

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Previous research on international market selection (IMS) typically is a-theoretical in nature and primarily focuses on a few, mostly developed countries. Here, we address both issues by (1) using factor endowment theory to predict IMS choices for the direct selling industry and (2) for a sample that includes 51 developed and developing countries representing 91% of total global GDP. Results indicate that the direct selling industry thrives in international markets with greater income inequality, greater female income inequality, less financial freedom, and access to the Internet. Implications of our study are discussed.