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According to your slides, you can do international trade using one of the following options: Licensing,...

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Finance

According to your slides, you can do international trade usingone of the following options: Licensing, Franchising, JointVenture, Acquisition of Existing Operation, Establishing NewForeign Subsidiaries. How are these different methods of doinginternational trade effect your company's cash flows? Yourcompany's discount rate? Which methods are relatively more risky?Why?

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3.9 Ratings (539 Votes)
Licensing is when the brand name is licensed to a local firm in another country The local firm carries out the business operations under the brand name and pays a licensee fee or royalty fee to the brand owner This option required low initial investment because most of the investment is done by the local firm The license fee or royalty fee is usually a flat yearly    See Answer
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