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 * 1) ====**Exporting.**====

====**2. Licensing:** Is to permit the use of something or to allow an activity to take place. This is another way were it permits company use the property of the license. The licensee pays a fee in exchange for the rights to use the intangible property and also for technical assistance. Most of the time the property is intangible, such as trademarks, patents and production techniques.====

Advantages of Franchising:

 * ====You can use a recognized brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise - the 'franchisor'.====
 * ====The franchisor gives you support - usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice.====
 * ====You usually have exclusive rights in your territory. The franchisor would not sell any other franchises in the same territory.====
 * ====Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation.====
 * ====Playing in new markets brings new offers to table that promise new incomes and new clients.====
 * ====Opening a new franchise let the brand be known in new places and markets.====
 * ====The access to funding is proportional to the quantity of franchise around the market.====

Disadvantages

 * ====Costs may be higher than you expect.====
 * ====The franchise agreement usually includes restrictions how you can run the business. You might not be able to make changes to suit your local market.====
 * ====Other franchisees could give the brand a bad reputation, so the recruitment process needs to be thorough====
 * ====You may find it difficult to sell your franchise - you can only sell it to someone approved by the franchisor.====

====**b) Management Contract :** Agreement between investors or owners of a project, and a management company hired for coordination and overseeing a contract. It defines the conditions and longitude of the agreement and the method of computing management fees.====

====A turnkey project means a project in which customers are paid to contractors to design and build new facilities and train staff. A turnkey project is the way a foreign company to export its process and technology to other countries by building a plant in that country. Industrial companies that specialize in production technologies commonly used complex turnkey projects, as an entry strategy.====

==== When a client/customer pay contractors to plan and build new facilities and train personnel this is called a turnkey project. One of the most important advantage of turnkey projects is that you have the opportunity of having a plant in a foreign country and earn profit. A disadvantage is that it includes risks, the worst of them being the takeover of the plant by the host country. ====

**3. Investment**
Is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument. Investment is related to saving or deferring consumption.

[[image:100323 Investmentunternehmen EN.png width="480" height="360"]]
====**Direct Investment: ** the act or practice of buying stock in a publicly without using a broker as an intermediary. Perhaps the most common means of direct investment is dividend reinvestment, which is the act of using one's dividends to buy more shares in the same company. Some companies also offer plans called direct purchase plans, which allow investors to bypass their broker. However, direct purchase plans are rather illiquid (it is difficult to sell one's shares without a broker), and are therefore bought for long term investing. ====

====Direct investment also refers to long-term investments in limited partnerships that invest in real estate, leased equipment, and energy exploration and development. In this type of investment, you become part owner of the hard assets of the enterprise. You realize income from your investment by receiving a portion of the business's profits, for example, from rents, contractual leasing payments, or oil sales. In some cases you realize capital gains at the end of the investment term, if the business sells its assets.====

The instructions on the portfolio investment is listed below:

 * 1) ====Determine what items or events you're saving for. These can be retirement, a new home, your children's education or anything else you choose.====
 * 2) ====Determine when you want to retire, purchase a home or send your children to college, to help you decide what percentage return you need to earn on your initial investment.====
 * 3) ====Decide how much money to invest.Invest what you can comfortably afford now, keeping in mind that you can change that amount later.====
 * 4) ====Determine how much risk you are willing to take. Many investments generate high returns and are riskier than others.====
 * 5) ====Once you decide the amount you are willing to invest, the returns you want to achieve, when you need the money and how much risk you are willing to accept, put together your investment portfolio.====
 * 6) ====An investment counselor or stockbroker is a good source of advice. Tell these advisers your objectives and ask them to suggest how to allocate your money.====
 * 7) ====Reevaluate your portfolio at least annually. Analyzeeach investment.====

====**b) Foreign Direct Investment: ** Plays an extraordinary and growing role in global business as it provides a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. It is defined as a company from one country making a physical investment into building a factory in another country.====

====There are other concepts we need to be familiar with because they are as important as the other ones explained above. You can see examples of them everywhere in the world because it is how societies are learning to expand.They are:====

License and Franchise
====The starting point in the franchising vs. licensing a business analysis is to consider the legal aspects, then the business aspects. In considering the legal aspects, begin with the following premise that applies to both options. If you put someone into business (or allow them to use your business name/mark) this transaction will normally be a regulated activity, subject to substantial penalties for noncompliance.====

====Why does regulation exist? The government, due to documented past abuses where tens of thousands of individuals lost all of their net worth by investing in nonexistent or worthless business endeavors, has devised two principal consumer protection mechanisms:====

(1) franchise disclosure-registration laws; and (2) business opportunity laws.
====The thrust of these laws is to require sellers to give potential buyers enough pre-sale information so informed investment decisions can be made before money changes hands, long-term contracts are signed and sizeable financial commitments are undertaken. Under federal regulations, a Franchise Disclosure Document (FDD) covering twenty-three individual chapters and a hundred or more pages in length must be prepared and given to every potential buyer at least 14 calendar days before any contract is signed or money paid.==== ====It doesn't matter what terms are used by the parties in contracts or other documents to describe their relationship. For example, the contract may call the relationship a license, a distributorship, a joint venture, independent contractors, etc., or the parties may form a limited partnership or a corporation. This is entirely irrelevant in the eyes of governmental regulators, in particular the Enforcement Division of Federal Trade Commission (FTC). Their focus is not on semantics, but on whether a small number of defining elements are present or not. Today the industry is subject to a complex web of regulations that differ from the Federal level to the state level and differ widely from state to state.====

(1) common sense - if it was really that easy, everyone would have done it that way;
====(2) if the relationship is not regulated under franchise law, business opportunity laws (discussed below) will apply, and complying with these will be a lot more expensive than going the franchise route; and====