In this paper we analyze the determinants of the choice between greenfield joint ventures and acquisitions in the international expansion of a firm through foreign direct investments. These are the two alternative means of accessing external firm-specific resources that may be needed when entering a new market. We also analyze partial acquisitions as a hybrid entry mode between both. Our results show that the choice between these two options is conditioned by transaction cost factors, as suggested by Internalization Theory, as well as by the previous entry mode choices and experiences of the foreign investor, as suggested by the Knowledge-Based Theories of the Firm.

Key words: foreign direct investment, joint venture, acquisition.
JEL classification: F21, F23 y L22.