Many firms, especially those that focus on design and problem-solving, sub-contract the manufacture, and maybe other functions as well, to specialist contract manufacturers.
It is important to consider the logistics of moving your merchandise to your customers. For businesses considering international trade, however, it becomes a crucial part of their decision making and planning process.
Many countries seek to discourage imports through the imposition of tariffs, quotas and non-tariff barriers (NTBs) though they may agree to make concessions to selected countries, usually in exchange for some sort of trade agreement.
Technology transfer and licensing are closely related but are subtly different. Licensing allows the licensee to make use of the licensor’s intellectual property. Often the licensee wants to license the use of a specific technology though they might also be able to license the rights to use a brand name or a trademark or even a piece of music.
This note outlines the questions to consider when appraising a business. You will find this helpful when you are looking at other businesses with view to investing in the business or buying it outright. You may find some of the questions appropriate to ask yourself if you are thinking of launching a new company in your target market.
Foreign direct investment (FDI) is an activity where an investor sets up or invests in an enterprise in a foreign country with the intention of acquiring a lasting interest and at least a degree of management control.
Unlike selling domestically, selling internationally requires that you think about many requirements, some of which are legal requirements and some of which may affect your level of profit.
You may simply be entering into a contractual arrangement as a customer or as a supplier or you may be considering something more collaborative. In every case, you will want to check out the businesses with which you will be working unless your arrangement with them is such that they pay for everything from you before you deliver.