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A major disadvantage of licensing usually it is difficult
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 MessaggioInviato: 21 Giu 2019 10:24:12  A major disadvantage of licensing usually it is difficult
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  jonassmedley

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Every single method is discussed in turn with
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risk and return properties. International trade is a traditional approach which they can display by firms to sink markets by exporting as well as importing goods. This approach causes marginal risk because firms usually do not place large amount in their capital at risk. If the firm goes through a decline in its exporting it may possibly normally decrease or discontinue this component of its business at a low cost.

Licensing is a popular method for
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National Companies to make the most of international business without trading sizable funds. It requires companies to supply their technology (copyrights, patents, trademarks, or trade names) in exchange for fees or various other particular benefits.

Licensing enables them to use their
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technology in foreign markets with not a major investment in foreign countries and without the transportation costs that derive from exporting. As local producer is situated domestically it allows minimizing political risks.

A major disadvantage of licensing is always that it is difficult regarding company providing the technology to make sure quality control in that foreign production process. Additional disadvantages include: are reduce licensee fees than FDI sales, high agency cost, risk
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that technology will end up being stolen, loss of chance to enter licensee`s market using FDI later.

A joint venture means a foreign ownership that is certainly jointly owned. Companies penetrate foreign markets by going a joint venture using firms that reside with those markets. A business unit that is definitely owned less than 1 / 2 is called a foreign affiliate and joint venture
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falls into this group. Joint Venture with a foreign company works well method if National Firm finds a right significant other.
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 MessaggioInviato: 21 Giu 2019 10:24:12 Adv
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