Method of Doing Business Abroad (What are importing and exporting? (…
Method of Doing Business Abroad
What are importing and exporting?
-Exporting is defined as the sale of products and services in foreign countries that are sourced or made in the home country.
-Importing is the flipside of exporting.
-Importing refers to buying goods and services from foreign : sources and bringing them back into the home country
What is countertrade?
exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money.
Types of Countertrade
What is global sourcing?
the practice of sourcing from the global market for goods and services across geopolitical boundaries.
examples of globally sourced products or services include: labor-intensive manufactured products produced using low-cost Chinese labor, call centers staffed with low-cost English speaking workers in the Philippines and Pakistan and India, and IT work performed by low-cost programmers in India and Pakistan and Eastern Europe.
what is FDI?
an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.
What is Licensing
the granting of permission by the licenser to the licensee to use intellectual property rights, such as trademarks, patents, brand names, or technology, under defined conditions.
What is Franchising
Similar to a licensing agreement, under a franchising agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a foreign company for a specified period of time and receives a royalty in return.
6 Essential Tips To Doing Business Internationally
2.Socialize and enjoy
3.Respect customs and try new things
5.Stay in touch
What is 'Outsourcing'
Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.
what is Offshoring
is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.