Professional Documents
Culture Documents
Companies can reduce the dilemma by analyzing decision factors. ` Decision factors Ownership advantages Location advantages Internationalization advantages
`
1) 2) 3) 4) 5) 6) 7) 8)
EXPORTING LICENSING FRENCHISING CONTRACT MANUFACTURING MANAGEMENT CONTRACTS TURNKEY PROJECTS MERGERS & ACQUISITION JOINT VENTURES
` ` `
LICENSOR leases the right to use the intellectual property Licensee uses the intellectual property to produce products for sale in his country He pays royalty to the licensor for using intellectual property Licensor receives the royalty as a consideration
Low investment Low financial risk Investigation of foreign market without efforts Licensee gets benefits Escapes himself from product failure