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Operating Internationally – What are your choices?. Lots of options…. Licensing Exporting Franchising Contract Manufacturing International Joint Ventures Strategic Alliances Foreign Direct Investment (FDI). Licensing .
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Lots of options… • Licensing • Exporting • Franchising • Contract Manufacturing • International Joint Ventures • Strategic Alliances • Foreign Direct Investment (FDI)
Licensing • Sell the right to manufacture products or use trademark in foreign country for a fee (royalty)
Exporting • Send goods or services overseas, sell directly to other companies or people in the foreign country
Franchising • Someone with an idea sells the right to use the name, provide the service, in specific territories in a specific way
Contract Manufacturing • Foreign company provides private-label goods to which domestic company attaches brand name or trademark
International Joint Venture • Two or more companies join to undertake a major project (they form a separate company)
Strategic Alliance • Long term partnership between two or more companies, established to help each build competitive market advantages
Foreign Direct Investment • Buy properties or businesses in other country; or set up manufacturing/service provisions in another country