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Indirect Export
• Domestic based export merchants• Domestic based export agents• Cooperative Organizations• Export management companies
Direct Export
• Domestic based export departments or divisions
• Overseas sales branch or subsidiary
• Travel ing export sales representative• Foreign-based distr ibutors or
agents
Licensing
• Licensor issues a license to a foreign company to use manufacturing process,TM, patent etc for a fee or royalty
• License gains production expertise or brand name
• Licensor has less control over the licensee than over its production and sales
• Risk of creating a competition
Licensing
• Management contracts Manage businesses for free• Contract manufacturing: Hires local manufacturers to produce the product• Franchising : Offers complete brand concept and operating system
Share ownership and control
License
The foreign firms might lack the financial, physical, or managerial resources to undertake the venture alone
Partners may disagree over investment, marketing, or other policies.
Can prevent international company from carrying out specific manufacturing and marketing policies
A foreign company can:
License
buy part or full interest in a local company
build its own manufacturing or service facilities
Advantages
• The firm secures cost economics• The firm strengthens its image in the
host country• The firm deepens its relationship• The firm retains its full control over its
investment• The firm assures itself of access to the
market