Unformatted text preview: pete with lowcost location manufacturers.
Possible high transportation costs.
Possible lack of control over marketing reps. 14-8
7 Turnkey Projects Advantages: – Can earn a return on knowledge asset.
– Less risky than conventional FDI. Disadvantages: – No longterm interest in the foreign country.
– May create a competitor.
– Selling process technology may be selling competitive advantage as well. 14-9
8 Licensing Advantages:
– Reduces costs and risks of establishing enterprise.
Overcomes restrictive investment barriers.
Others can develop business applications of...
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- Fall '12
- partner, Subsidiary, location economies, Market Entry Strategies