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Image to establish a partner in the new market. The mam uisauvantage is that a foreign company is not part of the parent company. Therefore, there is a risk that the licensee will become a competitor if the license agreement expires.
D. SET UP A FRANCHISING. In franchising, the company chooses to be an affiliate [franchisee], having to pay a fee to the franchisor. The franchisee is authorized to sell products and services. use the franchise format, and the business system. Companies that choose to franchise as an internationalization strategy must follow the franchisor's quality.price, and advertising standards. Those who use this strategy believe they can succeed in the international market using someone else's brand and operating according to their
systems and methods.E. BUILD A JOINT VENTURE WITH A COMPANY. A joint venture is an association
between two or more companies for a given period with a common purpose, in which the partners share capital, management, profits or losses, and know-how. This strategy can be interesting to internationalize a company with the support of a partner who already knows the foreign market.
1. When using this strategy. companies are permitted to sell their franchisors' products with the same quality and price.
2. Following this strategy, companies can sell their products overseas directly or through another business.
3. Opening a new branch in another country is a type of this strategy.
4. Companies having the same purpose will establish an association and share many things together.5. This strategy can be costly, yet it can help reduce the implementation risk to the lowest
level.
6. One variety of this strategy is the most uncertain of all internationalization strategies.7. Companies adopt this strategy with the hope that they can internationally succeed using another company's brand.
8. A possible problem that a company may encounter when using this strategy is that its partner may turn into a competitor when their agreement ends.
A. Strategy A
B. Strategy B C. Strategy C
D. Strategy D
E. Strategy E
Number(1,2,3...)
Letter (A, B, ACD....)
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