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This article focuses on the operation method (or entry mode) that a company utilizes in developing its involvement in a foreign market. An overview and critique of ‘economics’ and ‘process’ approaches to this issue is undertaken. It is argued that both approaches use relatively constrained frameworks of influences on mode choice, and have yet to come to terms with the frequent reality of operation modes in combination. Methodological and conceptual issues arising out of the analysis are considered as a basis for moving forward the research in this area.