Almayda, Kimberly R.

BSBA HRM 2-1

Discuss the following:

1. Globalization.
2. Export
3. Licensing
4. Franchising
5. Joint venture
6. Foreign Direct Investment.

Globalization
The term "globalization" refers to how trade and technology have made the world a more
interconnected and interdependent place. The economic and social developments that have
resulted from globalization are also included in its scope.

Export
Goods and services produced in one country and sold to buyers in another are known as
exports. International trade is made up of exports and imports.

Exports are critical to modern economies because they provide people and businesses with
access to a larger market for their products. Fostering economic commerce, and boosting
exports and imports for the advantage of all trading parties, is one of the main functions of
diplomacy and foreign policy between countries.

Licensing
Licensing is a business arrangement in which a firm grants another company temporary access
to its intellectual property rights, such as its manufacturing process, brand name, copyright,
trademark, patent, technology, trade secret, and so on, in exchange for a fee and under certain
restrictions.

Franchising
In exchange for a price and subject to specific conditions, a company offers another company
temporary access to its intellectual property rights, such as its manufacturing method, brand
name, copyright, trademark, patent, technology, trade secret, and so on.

In exchange for a franchise fee, the owner licenses his or her business's operations, as well as
its products, branding, and knowledge.
Joint venture
A joint venture is a partnership between two or more businesses, usually for the aim of
launching a new commercial venture. Each party contributes assets to the joint venture and
agrees on how income and expenses will be shared.

Two businesses with complementary strengths usually create a joint venture. To bring an
innovative product to market, a technological company might form a collaboration with a
marketing firm.

Foreign Direct Investment

An investment in the form of controlling ownership in a business in one country by an entity
established in another country is known as a foreign direct investment. A sense of direct control
distinguishes it from foreign portfolio investment.