Topics: Corporation, Subsidiary, Parent company Pages: 2 (599 words) Published: November 2, 2014

MgtMeans of International Processes: Upssala Model
Further investment cycles
Further resources are committed: Buy local distributors; invest in a local manufacturing unit. Initial commitment of resources: Find a local distributor, gain local management knowledge: customers, competitor regulatory conditions. Indirect Export

Firm------------Import/Export firm------------non- exclusive distributors/agent A firm wishing to expand abroad, but not wishing to commit many resources will use an import/export firm that will sell the firm products to one or more non-exclusive distributors/agent. The firm has little control on promotion/pricing. Firm---------------------agent (distributors) (usually exclusive) The firm export a production a foreign country by using an authorized (often exclusive) agent/distributor.. The firm will have to provide promotional and marketing strategies used by the agent. Licensing : A firm (license holder) may choose to sell to other firms located abroad the right to use its technology, brand name. The firm in question receives “licensing fees” and has a final say (incertation cares) on the quality/output of the licensee’s final product. Ex: Piere Cardin: paying for the license 150.000.000 to the owner. Franchising: A firm (franchise holder) may choose to give the legal riht to another firm to use its know-how brand name, logo for a fee. The franchise holder should normally provide the franchisees training, administrative and marketing support as well as methods of controlling quality. In certain cases the franchisee pays a flat fee and a % on sale realized, while in other cases only a commission in given. Joint Venture/Mgt/Service Contracts: A well-established firm in a given field may agree to provide managerial and/or technological know-how and personnel to a foreign firm on a contractional basis and for a specified time period. The firm will get in return “Mgt or Service Fees” and, in certain cases, will be in change of...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • tyger and the lamb Essay
  • Beka Lamb Essay
  • Essay about tyger and the lamb
  • Essay on Comepare Contrast "The Tyger" VS "The Lamb" by William Blake.
  • Comparison of "The Tiger" and "The Lamb" Essay
  • The Lamb, the Tyger, and the Creator Essay
  • Lamb to the slaughter by Roal Dahl Essay
  • Tyger and Lamb 1997 Poem Essay

Become a StudyMode Member

Sign Up - It's Free