MGMT 1 Lecture Notes - Lecture 3: Franchising, Foreign Direct Investment
Document Summary
A licensor grants a license the right to manufacture its product or use its trademark for a fee (royalty) Exporting (public) export assistance centers help small to mid-sized companies (private) export-trading companies handle much of the logistics of exporting (eg. , customs, documentation) Contractual agreement between franchisor and franchisee to sell a product in a specific way. Products often need to be adjusted to the specific of a particular market. Both refer to long-term partnerships between companies from different countries. Main objective: take advantage of unique knowledge and experience. Joint ventures share cost and risks ( and possibly sensitive technologies) Buying of property or a business in a foreign country. Foreign subsidiaries are owned by a parent company. Laws from both the home and host country must be obeyed. Must have physical presence in a foreign country. Huge foreign direct investment funs controlled by govts.
