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Exploring International Business Options: Licensing, Exporting, and More

When considering operating internationally, businesses have numerous options to expand their reach and grow. Key choices include licensing, which allows foreign use of trademark for royalties; exporting, which involves selling goods or services directly overseas; franchising, granting rights to use trademarks and systems in specific territories; and contract manufacturing, where a foreign company produces goods for a domestic brand. Other opportunities include forming international joint ventures for major projects, strategic alliances for mutual benefits, and foreign direct investment to establish a presence in foreign markets.

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Exploring International Business Options: Licensing, Exporting, and More

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  1. Operating Internationally – What are your choices?

  2. Lots of options… • Licensing • Exporting • Franchising • Contract Manufacturing • International Joint Ventures • Strategic Alliances • Foreign Direct Investment (FDI)

  3. Licensing • Sell the right to manufacture products or use trademark in foreign country for a fee (royalty)

  4. Exporting • Send goods or services overseas, sell directly to other companies or people in the foreign country

  5. Franchising • Someone with an idea sells the right to use the name, provide the service, in specific territories in a specific way

  6. Contract Manufacturing • Foreign company provides private-label goods to which domestic company attaches brand name or trademark

  7. International Joint Venture • Two or more companies join to undertake a major project (they form a separate company)

  8. Strategic Alliance • Long term partnership between two or more companies, established to help each build competitive market advantages

  9. Foreign Direct Investment • Buy properties or businesses in other country; or set up manufacturing/service provisions in another country

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