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Forms and ownership of Foreign Production (Types of collaborative…
Forms and ownership of Foreign Production
Why exporting may not be feasible?
When it is cheaper to produce abroad
When transportation costs to much
When domestic capacity is not enough
When products and services need altering
When trade restrictions hinder imports
When country of origin becomes an issue
Non collaboration
Reasons for FDI
Market failure
Internationalization
Appropriability
Freedom to Pursue a Global Strategy
Acquisition versus greenfield
Acquisition
Making greenfield investements
Leasing
Why companies collaborate?
Alliances types
General motives for collaborative arrangements
To Spread and Reduce Costs
To Specialize in Competencies
To Avoid or Counter Competition
To Secure Vertical and Horizontal Links
To Gain Knowledge
International motives for collaborative arrangements
To Gain Location-Specific Assets
To Overcome Governmental Constraints
To Diversify Geographically
To Minimize Risk Exposure
Types of collaborative arrangements
Some considerations in collaborative arrangements
Control
Prior Company Expansion
Compensation
Licensing
Major Motives for Licensing
Payment Considerations
Selling to Subsidiaries
Franchising
Franchise Organization
Operational Modifications
Management contracts
Turnkey operations
Contracting to Scale
Making Contacts
Marshaling Resources
Arranging Payment
Joint venture
Equity alliance
Problems with collabiratives arrangements
Relative importance
Divergent objectives
Question of control
Comparative contributions and approbations
Culture clashes
Differences in Country Cultures
Differences in Corporate Cultures
Managing international collaborations
Country attractiveness and operational options
Problems of switching modes
Learning from experience
Dealing with partners
Finding and Evaluating Potential Partners
Negotiating the Arrangement: The Question of Secrecy
Controlling Through Contracts and Trust
Improving Performance