Explain in brief the main types of international business?
19/June/2025 23:14
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Brief Explanation: Main Types of International Business
1. Export and Import
Exporting means selling goods and services to other countries.
Importing means buying goods and services from foreign countries.
It is the most basic and widely used form of international business.
2. Licensing
A company (licensor) allows a foreign firm (licensee) to use its brand, technology, or product in exchange for a fee or royalty.
Suitable for low-risk market entry without large investment.
3. Franchising
A franchisor grants a foreign party the right to use its brand name, products, and business model.
Common in retail and food industries like McDonald’s or Subway.
4. Joint Venture
Two or more companies from different countries create a new business together.
They share ownership, risk, profit, and decision-making.
Useful for entering regulated or unfamiliar markets.
5. Foreign Direct Investment (FDI)
A company invests directly in facilities or operations in another country (e.g., building factories or offices).
High investment and control, but also high risk and long-term commitment.
6. Turnkey Projects
A company designs and builds a facility for a foreign client and hands it over once it is fully operational.
Common in construction, infrastructure, and engineering sectors.
