“…These are not the subject of the current research, because these modes imply a high influence and intervention of the host government that do not allow to foreign firms a sufficient flexibility in sense of market economy (Root, 1987;Gougeon and Gupta, 1998). So, we concentrate, based on Transaction-Costs Economics (Coase, 1937;Williamson, 1975Williamson, , 1979 and Organizational Learning theory (Yelle, 1979;Levitt and March, 1988;Argote et al, 1990;Hamel, 1991), to analyze the foreign firm's investment mode choice between IJV and WOS.…”