Explain - technology contracting (licensing) as an alternative to fdi or ownership strategy
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Nations in recent decades have made important forward leaps towards an inclusive environment which has contributed greatly to making global business dealings free from restrictions (i.e. trade barriers) and complexity& this culture is called Globalization which envisages an interdependent world economic system dominated by global corporations not identified with any individual country (Martin, 1998, p. 23).
For any firm to develop and grow it needs to expands its activities globally and to achieve that objective there are different market entry modes available to the firm ranging from Foreign Direct Investment (FDI), Exporting, Licensing to Franchising. This essay will explain why firms prefer to use FDI instead of the other above mentioned tools.