Forms of International business Multinational Corporations (MNC)

      

Forms of International business Multinational Corporations (MNC)

  

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Licensing:- Refers to contractual arrangement where the licensor (MNC) gives a license to a Licensee (domestic firm) to manufacture a product on behalf of the MNC. The MNC provides the technology, management skills and the brand name for a fee called royalty.
Franchising:- Is a contractual arrangement where a MNC sells its goods through a franchise sales agent. The product may be produced in different country and brought for sale in the domestic market.
Exporting: Involves selling goods or services in foreign countries through the government, private agents or companies.
Joint Ventures: - Is a contractual arrangement between a foreign and domestic firm. The company involved jointly manufacture goods/services. The foreign company provides technical development while the local company provides for local development and adaptability.
Titany answered the question on October 26, 2021 at 11:50


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