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By : Siddhartha Arya
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à. LICENSING
2. FRANCHISING
3. MANAGEMENT CONTRACT
5. JOINT VENTURES
6. STRATEGIC ALLIANCES
In a JV, parties agree to develop, for a finite time, a new entity and
new assets by contributing equity . They both exercise control
over the enterprise and consequently share revenues, expenses and
assets.
6. Cost reduction
Labor costs tend to differ among nations. MNCs can hold down
costs by locating part of all their productive facilities abroad.
à. POLITICAL RISK :
4. REGULATORY COMPLIANCE
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