Calender Technologies Ltd, producers of household consumer products are considering international expansion into the Gambia. A local Gambian firm has expressed the desire to buy the licensing rights from Calender Technologies Ltd. However, the C.E.O of Calender Technologies Ltd prefers to do a foreign direct investment in the Gambia instead of licensing. Explain four reasons why the C.E.O. desires foreign direct investment rather than licensing its brand to the Gambian firm. . Explain the exporting mode of international expansion and give three reasons why a company might opt for foreign direct investment rather than exports.
Calender Technologies Ltd, producers of household consumer products are considering international expansion into the Gambia. A local Gambian firm has expressed the desire to buy the licensing rights from Calender Technologies Ltd. However, the C.E.O of Calender Technologies Ltd prefers to do a foreign direct investment in the Gambia instead of licensing. Explain four reasons why the C.E.O. desires foreign direct investment rather than licensing its brand to the Gambian firm. . Explain the exporting mode of international expansion and give three reasons why a company might opt for foreign direct investment rather than exports.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Transcribed Image Text:2. Calender Technologies Ltd, producers of household consumer products
are considering international expansion into the Gambia. A local
Gambian firm has expressed the desire to buy the licensing rights from
Calender Technologies Ltd. However, the C.E.O of Calender Technologies
Ltd prefers to do a foreign direct investment in the Gambia instead of
licensing. Explain four reasons why the C.E.O. desires foreign direct
investment rather than licensing its brand to the Gambian firm.
3. Explain the exporting mode of international expansion and give three
reasons why a company might opt for foreign direct investment rather
than exports.
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