There are several methods of conducting international business operations, some of which include:
- Exporting: This involves selling products or services to customers in other countries from the home country.
- Licensing: This involves giving a foreign company the right to use your company’s products or services in exchange for a fee or royalty.
- Franchising: This is similar to licensing, but it involves giving a foreign company the right to use your company’s business model, name, and branding in exchange for a fee or royalty.
- Joint venture: This involves partnering with a foreign company to establish a new business venture, sharing ownership and control of the business.
- Direct investment: This involves setting up a foreign subsidiary or acquiring an existing company in another country to conduct business operations.
- Strategic alliances: This involves partnering with a foreign company to share resources, knowledge, and expertise for mutual benefit.
- E-commerce: This involves selling products or services online to customers in other countries.
The choice of method for conducting international business operations depends on several factors, including the nature of the business, the target market, and the level of investment required.
