MKTG209 Study Guide - Final Guide: Franchising, Foreign Direct Investment
Document Summary
Reasons for internationalisation: reactive (competition, overproduction) vs. proactive (advantages & market + government) Change agent: internal (management, new product) vs. Export intermediaries: agents: sell goods for a commission, distributors: purchase goods and then sell on, indirect distributors: purchase goods and then sell on, direct distributors: firm takes full responsibility for exporting, integrated distributors: firm makes investment in distributor. Licensing & franchising: licensing: allowing another firm to use ip in exchange for royalties, licensing advantages: no capital, high profit, pre-empt markets, licensing disadvantages: disagreements, competitors, licensing agreement issues: dispute resolution, scope, royalties, Terms, license length, compliance: franchising: allowing another to conduct business in a specific way, franchising advantages: proven concept, high profit, market potential, franchising disadvantages: compliance, government intervention, Foreign direct investment: reasons for fdi: market & government incentives, positive perspectives on fdi: economy, new jobs & capital, increase. Competitiveness, new technology: negative perspectives on fdi: brain drain, overreliance, competitor to.
