MGMT 1 Lecture Notes - Lecture 4: Contract Manufacturer, Franchising, Foreign Direct Investment
7 Dec 2016
School
Department
Course
Professor
Document Summary
Resources overseas that aren"t in home country. Employees find alternative sources of labor. Diversification to reduce exposure to political and economic instability. Ideas obtain new technology and to increase innovation. Licensing exporting franchising contract manufacturing joint ventures fdi. Least ----------------amount of commitment, control, risk and profit ---------------------- most . When a firm (licensor) provides the right to manufacture its product or use its trademark to a foreign company (licensee) for a fee (royalty) Spending little or no money to produce or market their products. Eacs provide hands-on exporting assistance and trade-financed support for small and medium sized business that wish to directly export goods and services. A contractractual agreement whereby someone with a good idea for a business sells others the rights to use the name and sell a product/service in a given area. Franchisors need to be careful to adapt their product to the countries they serve.
