BSB119 Lecture Notes - Franchising, Foreign Direct Investment, Intangible Asset
Document Summary
Transnational strategy: sharing and integrating different capabilities and contributions from different country operations (a hybrid of global and multidomestic strategies) Licensing: an agreement whereby one company gives rights to another for the use, in return for a fee, of assets such as trademarks, patents and copyrights. Greenfield: establishing a new operation in a foreign country. Internalisation: control through self-handling of foreign operations by keeping them within the same corporation. Outward expansion - a business strategy where a domestic firm expands its operations to a foreign country either via a green field investment, merger/acquisition and/or expansion of an existing foreign facility. This is a process of natural progression for business. Inward expansion expansion of existing business activities within the home country. Calof and beamish (1995: p. 116) suggested that internationalisation is the process of adapting firms" operations (strategy, structure, resource, etc. ) to international environments .
