Difference between Letter of credit and Drafts
Difference between Letter of Credit and Drafts Difference between two payments methods of international trade – Letter of credit and Drafts are given below:
Category Archives: Corporate Finance
Licensing Agreement vs Acquisition Risk and Return
Licensing agreement vs Acquisition Associated Risks and Returns What are Potential risk and return associated with a licensing agreement with a foreign firm, and the acquisition of a foreign firm? A licensing agreement has restricted potential for return, as the foreign firm gets more benefits due to the licensing agreement. However, the MNC has restricted… Read More »
Foreign Subsidiary Company
International Markets: Market Entry Strategies: Foreign subsidiary company When a local company is partially or wholly owned by a larger company situate in a foreign country, it is said to be a foreign subsidiary company. Such companies are held by parent companies under the laws of the host country.
Acquisition
International Markets: Market Entry Strategies: Acquisition Define Acquisition Acquisition means an event where majority holding in a company is bought by another company simply for the purpose of gaining control over its management. It is believed to be a strategy for growth as it allows a company to expand operations in a niche without investing… Read More »
Hostile Takeover
International Markets: Market Entry Strategies: Hostile Takeover what is a hostile takeover in business? Hostile takeover definition: It is possible for a company to acquire another company without its approval. This is called hostile takeover and it happens when one company tries to gain majority stake in another company by getting hold of its shares… Read More »
Joint Venture
International Markets: Market Entry Strategies: Joint Venture Both partners in a JV have some common goals such as Introducing a new product in a new market, Risk sharing, Sharing of technology Manufacturing if new product Following JV rules and regulations of host country Joint Ventures bring many other benefits such as help in increasing political… Read More »
Franchising
International Markets: Market Entry Strategies: Franchising: Franchising is an easier mode of foreign market entry as it only requires the franchise to transfer knowhow and allow the franchisee use of its business model along with its name and logo. Franchise does not need to divulge his secrets as is the case in licensing agreement. There… Read More »
Licensing
International Markets: Market Entry Strategies: When entering international markets basic entry choices include: Licensing Licensing is a method that allows companies in foreign markets to make and sell the product of another company for certain period of time. This is referred to as international licensing agreement. Under this agreement, the licensor or the party that… Read More »
International Trade
International Trade Management What is international trade? International Trade Definition: International Trade is the exchange of goods, services or capital across international territories. Greater competition and more competitive pricing in the world market are attributed to International trade. International trade management, as the name implies, is a course that teaches how the process of international… Read More »
International Financial Management
International Financial Management This long and impressive phrase simply means learning international finance especially when a company is dealing in a business environment that is international. This environment is different depending upon the foreign country because of changes in currency, political establishments, difference in markets, and different opportunities existing in different markets. This term came… Read More »