1. The document discusses the various modes that firms can use to enter international markets, including exporting, licensing, franchising, and interfirm cooperation.
2. It explains that licensing allows firms to capitalize on existing R&D without a large capital investment or involvement in foreign markets, but it may create competitors.
3. Franchising provides financial gains and allows market access but requires standardization and adaptation to local conditions. Interfirm cooperation can be used for market development and risk sharing.
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Modes Of International Business
1. Learning Objectives To learn how firms gradually progress through an internationalization process. To understand the strategic effects of internationalization. To study the various modes of entering international markets.
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5. Modes of International Business Exporting Exporting Importing Licensing Franchising Foreign Direct Investment Interfirm cooperation
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10. Key Reasons for Franchising Financial Gain Market Potential Saturated Domestic Markets
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