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k) subsidiary (subsidiary)
when a multinational company to invest directly in terms of capital and
personnel to set up branches overseas or buy facilities from other
foreign companies.
The holding company has full control of the company's travel
operations.
l)Licensing (licensing)
give permission to issue or sell a brand or using copyright, patent and
how the process for manufacturing a product.
The licensor will get a reward in the form of fee and royalty from the
sale of products or services produced by licensees.
Licensing (licensing)
Advantages
using a low-capital, and easy to enter the international market.
as an extension of the life of the product in the maturity stage of
product life cycle.
royalties for the license was secured and the term overcome the high
transportation costs.
The risk level is low in licensing business.
Weakness
the applicant may lose interest to renew the contract unless the
licensor to maintain interest
the licensor must have a unique technology, its own copyright and
brand that could attract the attention of international consumers.
m) International Franchise
Franchisees or the company granted the franchise rights to provide a
number of franchise fees, royalties, management fees, as well as a
certain percentage of all sales made to parent company
Examples of such franchise Malaysia Nelsons, Smart Reader,
MarryBrown Fried Chicken and England Optical
a)Tariffs (tariffs)
business restrictions in the form of tax on imported goods used to
increase the prices of goods imported and locally manufactured
products to maintain
Specific tariffs - fixed a number of tax imposed on each unit of
imported goods.
ad-valerom rates - the tax on the value of imported goods.
b) Quota (quota)
restrictions on the amount of imported goods in the total quantity of
goods imported.
Quotas imposed by a country to restrict the quantity of goods
imported but does not increase government revenue.
a) Socio-cultural
Culture, religion, customs, cuisine and other factors pertaining to the
community in the country skills, social perception, efficient work
habits and good relations between individuals is needed in
international management.
For example, the issue of whether a product is halal or not is a
important matter to the market in Muslim countries like Malaysia and
Middle East countries
b) Lack of capital or limited
requires huge capital and total capital varies according to the
strategy used
Levels of capital required in international business is export, contract
agreements, licensing, franchising, joint ventures, subsidiaries and
manufacturing plants
e) patriotism
people in a country more interested in the products of their own
country.
For example, the people of Iran and Muslim countries that has
sentiment "anti-American" is definitely would not allow products from
U.S.
firms
f) Technology
Every country has the capacity and capability to achieve technological
advances of its own.
If a company is bringing in technology that have a low level of
technology or the lack of conformity with the existing level of technology
in the country, this would give a bad impression to the company