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International and Entrepreneurial
Strategies
Name
Institutional
affiliation
International
and Entrepreneurial Strategies
After
the selection of an international strategy, an organization must consider the
modes of entry. Malhotra, Agarwal, and Ulgado (2003) opine that the modes of
entry are avenues that help an organization in gaining entry to an
international market. There are a number of modes of entry alternatives that
include, joint venture, franchising, licensing and exporting. These
alternatives are the same; however, they suit differently to organizational
goals and objectives.
International licensing
International
licensing involves a cross-border agreement that allows international
businesses to use locally licensed properties in the target country. The
licensor provides leases to the licensee to use intellectual property
(Malhotra, Agarwal, & Ulgado, 2003).
Franchising
Under franchising, international organization (franchisee) operate under the name of local companies (franchisor) in the target country. Malhotra, Agarwal, and Ulgado (2003) assert that in this arrangement for the services rendered the franchisor receives payment from the franchise. As opposed to licensing the franchisor holds...
