Forms of International Business:

Multinational Corporations (MNC):

They operate in many countries through foreign direct investment strategies (FDI). They build manufacturing plants in other countries and develop their distribution and marketing networks in those countries.

• Licensing:-  Refers to contractual arrangement where the licensor (MNC) gives a license to a Licensee (domestic firm) to manufacture a product on behalf of the MNC. The MNC provides the technology, management skills and the brand name for a fee called royalty.
• Franchising:- Is a contractual arrangement where a MNC sells its goods through a franchise sales agent. The product may be produced in different country and brought for sale in the domestic market.
• Exporting: Involves selling goods or services in foreign countries through the government, private agents or companies.
• Joint Ventures: - Is a contractual arrangement between a foreign and domestic firm. The company involved jointly manufacture goods/services. The foreign company provides technical development while the local company provides for local development and adaptability.