INTERNATIONAL BUSINESS METHODS

Jun 21st, 2015
Studypool Tutor
Price: $10 USD

Tutor description

The most common methods of international business are as follows: a) International Trade b) Licensing c) Franchising d) Joint Ventures e) Acquisition of existing business f) Establishing new foreign subsidiaries. INTERNATIONAL TRADE: It is simple import & exports i.e. buy at lower rate & sell at high rate.

Word Count: 1982
Showing Page: 1/8
INTERNATIONAL BUSINESS METHODS:The most common methods of international business are as follows:a) International Tradeb) Licensingc) Franchisingd) Joint Venturese) Acquisition of existing businessf) Establishing new foreign subsidiaries.INTERNATIONAL TRADE: It is simple import & exports i.e. buy at lower rate & sell at high rate.LICENSING:A company can give technology (copy right, patents, trade mark& trade name etc. In exchange of certain fee. FRANCHISING:It is a very popular form of SME these days like KFC, Pizza Hut etc. It is defined as a continuing arrangement between the parent company i.e. franchisor and an entrepreneur i.e. franchisee. The agreement is for a certain period which can be extended as decided mutually.ADVANTAGES:To the franchisorTo the franchiseeExpand distribution without increased capital investment.Sound management, training and decision making may be available.Community acceptance of the productMarket tested product so less risk will be there.Marketing & distribution expenses are shared. Advertising & promotion is already there.Some operating cost may be transferred to the franchisee.Acceptance in large system of retailers.Flat fee can be collected from franchiseeCredit may be available.Through agreement, quality control can be maintained.Advisory available.Percentage on sale can be earned.Credit may be available.DISADVANTAGES:FranchisorFranchiseeLong distance control over franchisee.Gives up much freedom in mana

Review from student

Studypool Student
" AMAZING as always! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors