Fdi Advantages and Disadvantages

Topics: Economics, International trade, Brand Pages: 3 (612 words) Published: June 17, 2013
|Entry Mode |Advantages |Disadvantages | |Joint Venture |Gain immediate access to local partner’s knowledge, |Coordination between partners may not be smooth | | |expertise, networks, and market share |Political risk exposure is high | | |Development costs and risks are shared equally |Management structure and division of responsibilities can be | | |Accessing additional financial resources |very complex | | |Widening economic scope fast |Uncontrolled or unmonitored increase in the operating cost | | |Tapping newer methods, technology, and approach you do not | Shared profit | | |have | | |Franchising |Rapid expansion to foreign market |Conflict with local operators | | |Investment is minimal |Maintaining brand image and reputation may be challenging | | |Develop brand equity quickly |Control over quality may be difficult | | |Franchise locations may operate better and more profitably |Potentially more costly, both in upfront costs, as well as | | |than "company owned" units |from royalty payments, etc that might be...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Fdi in India Advantages and Disadvantages Essay
  • Fdi: Advantages and Disadvantages Essay
  • Analysis of advantages and disadvantages of FDI Essay
  • Advantages and Disadvantages of Fdi in China and India Essay
  • Essay on Advantages and Disadvantages of Exporting
  • Fdi
  • Fdi Instruments Advantages and Disadvantages Research Paper
  • Essay about Advantages and Disadvantages of Fdi in India

Become a StudyMode Member

Sign Up - It's Free