Financies

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International business

Seminar paper

Foreign Direct Investment

&

Collaborative Ventures

Sarajevo, may 2012.

Content:

1. Introduction 3

2. Foreign direct investment 4

2.1. Types 4

2.2. Methods 5

2.3. Trends in Foreign Direct Investment 6

2.4. Advantages of foreign direct investment 7

3. International Investment and Collaboration 7

3.1. Motives for Collaborative Arrangements 8

3.1.1. Motives for Collaborative Arrangements: General 8

3.1.2. International Motives for Collaborative Arrangements 9

4. Foreign market entry strategies 10

4.1. Exporting 11

4.2. International licensing 12

4.3. International franchising 13

4.4. Management contracts 14

4.5. Turnkey operations 16

4.6. Equity alliances 17

4.7. Joint ventures 18

4.8. Consortiums 20

4.9. Contract manufacturing 20

4.10. Full ownership and wholly owned subsidiaries 21

4.11. The case of “born global” firms 22

5. Problems of Collaborative Arrangements 24

6. Managing Foreign Arrangements 25

7. Case: 10Questions : Foreign Investment In India 26

8. Conclusion 30

9. References 31

1. Introduction

When forming objectives and implementing strategies in a variety of country environments, firms must either handle international business operations on their own or collaborate with other companies. Although exporting is usually the preferred alternative since it allows firms to produce in their home countries, participating in some markets may require using a variety of other equity and nonequity arrangements. These can range from wholly owned operations to partially owned subsidiaries, joint ventures, equity alliances, licensing, franchising, management contracts, and turnkey operations. The first part of this seminar paper is based on foreign direct investment generally. Then we explained International Investment and...