Identification should include a brief description of potential strategies for expansion by a business into the global marketplace, such as the following:
- Subcontracting
- Joint ventures
- Franchising
- Foreign licensing
Process/Skill Questions:
- What are the advantages and disadvantages of subcontracting, joint ventures, franchising, and foreign licensing?
- What are some businesses currently using expansion strategies successfully?
- How would a business determine its best expansion option?
- What is a wholly owned subsidiary?
- What is the difference between licensing and franchising?
- How can licensing be used by domestic companies to expand into international markets?
- Why would joint ventures be permitted by a foreign country that does not allow wholly-owned subsidiaries?
- What is the purpose of a test market? How can they be used by a company considering international expansion?