Exporting is a good strategy if one wants to quickly enter several foreign markets. This would be particularly useful if one is selling a commodity item, such as clothing or food.For example, Kenya, Jamaica and Colombia have the right climate to grow coffee. That makes them more likely to export coffee. India’s population is its comparative advantage. They have a large population of people who speak English and are familiar with English laws.
That gives them an advantage in skilled yet affordable call center workers.We consider licensing to be one of the easiest ways to get started, but it’s not necessarily an “easy process” overall. You first have to convince the firm that your product is right for them. Then, you need to convince them that it will sell.
Then, you need to deal with governments and lawyers to iron out all of the legal aspects of the “sale” of the license.You don’t lose control of your product – it’s not the same as selling the rights to your product. You’re merely licensing the rights to your product to a foreign company for a limited amount of time. One of the example of licensing include the use of software like Microsoft in your company in this case your company should agree with all the terms and conditions given by the microsoft.
franchising means opening additional outlets through the sale of franchise rights to independent investors who will use your name and operating system. A franchisee pays a franchisor an initial franchise fee in return for the rights to open and operate a business under the franchise trademark and for training in how to operate the business. In some cases, the fee may also cover additional services such as assistance with site selection. In most systems, after the startup period, franchisees also pay an ongoing periodic royalty fee–4 percent to 10 percent of sales on average–for continued support and training in advertising, marketing, sales, operational guidance, financial and human resources consulting, and other services.