The purpose of step A is to identify invariants. An invariant is a condition in the firm (X) and/ or the environment (Y) that precludes one or many entry modes. An invariant within a firm might take the form of explicit statements, in the company's philosophy, policies, or standard operating procedures, that rule out a particular mode. For example, the company's management may have strong feelings about not doing business with the Communist world or about not being open on Sundays. Or, like IBM, the company may not wish to get involved in joint ventures. Governmental laws and restrictive policies are examples of environmental invariants that must be identified. Some possible environmental invariants are listed in Table 10.3. The essential difference between constraints and invariants is that the former can be overcome by manipulating the firm's goals or resources, whereas the latter probably cannot be overcome.
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