Methods of Technology Transfer

Methods of Technology Transfer There are many reasons that a companion might inadequacy to gallop its operations on an world(prenominal) level: growth, profitability, and local market saturation are solely a few examples (Beamish, Morrison, Inkpen, & Rosenzweig, 2003). Because different types of companies have different priorities when they combust into global markets, it is important to choose an appropriate method of internationalization. The answer of this paper is to discuss the benefits and challenges associated with 4 basic methods of internationalization and to comparability and contrast the methods. Finally, this paper will evaluate how changes and advances in technology have served to drive the internationalization of business. Methods of Internationalization The four basic methods of internationalization ? licensing, exporting, joint ventures, and wholly owned subsidiaries ? each have their own benefits and challenges. Below, all four methods are described and compared. Some methods are clearly more appropriate for large, well-established organizations, while others could be utilise by small or large businesses alike. Understanding the similarities and differences among these four methods is important when a company is trying to identify its cash advance to expanding internationally.

Licensing occurs when one organization authorizes another organization to independently trade/re snitch their technology and collects a licensing fee, typically called a royal line payment. Licensing is a method used by companies looking to expand their product lines into new markets, not for globalizing internal business processes. The benefits of licensing are the low level of investment required and the high gross profit margin generated through sales in a new market. However, licensing relationships be to include restrictions, such as that the licensor will not sell in the same region as the licensee. These types of restrictions dont bust the licensor much control over revenue growth and profits, which are... If you want to get a full essay, order it on our website: Ordercustompaper.com

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