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Yedr Assigmnet
Yedr Assigmnet
Mention and
describe at least four methods. Describe also direct foreign investment (DFI) by relating to
those methods.
A. International trade is relative constructive approaching Involving exporting and
Importing.
Minimal risks because capital is not placed at risk
B. Licensing allows a firm to provide its technology (copyright, patents, trademarks or trade
names in exchange for fees or some other benefits
Licensing allows firms to use their technology in foreign markets with outa major
investment of foreign countries and without the transportation costs that results from
exporting
C. Franchising obligates a firm to provide a specialized sales or service strategy , support
assistance and possible an initial investment in the franchise in exchange for periodic fees
It is the practice of using another firms successful business model
Like licensing franchising allows to penetrate foreign markets without a major
investment in foreign countries