What are Types of Foreign Collaboration?
The 4 primary types of foreign collaboration are depicted below.
The classification or types of unusual collaboration include namely:
- Financial collaboration.
- Technical collaboration.
- Marketing collaboration.
- Management consultancy collaboration.
Now let's croak along farther to hash out each type of unusual collaboration.
1. Financial collaboration
In example of financial collaboration, the inflow of unusual investment takes house inwards the domestic (host) country.
finance by:
- (a) Purchasing ownership shares
- Here, unusual fellowship purchases ownership shares of the domestic fellowship together with inwards render gets the dividend for these shares.
- (b) Giving long-term loans
- Here, unusual fellowship gives long-term loans to the domestic fellowship together with inwards render gets involvement from these loans.
- (c) Giving credit facility
- Here, unusual fellowship gives credit facility to the domestic (native) company. The native fellowship uses this credit facility to buy raw-materials, flora together with machinery.
Thus, inwards this collaboration, in that location is an inflow of finance from developed countries to developing countries.
Generally, it is seen that developing countries seem upwards fiscal problems. Financial collaboration comes every bit an assistance to solve these problems, together with therefore, it is really pop inwards the developing countries.
2. Technical collaboration
In example of technical collaboration, the inflow of unusual engineering takes house inwards the domestic (host) country.
Technical collaboration includes integration of unusual engineering amongst domestic (indigenous) technology.
In technical collaboration, the unusual fellowship provides technological know-how, professional person services together with expertise, installs automated machineries, etc., inwards the domestic country. Here, an inflow of modern engineering takes house from the developed province to the developing country.
Technical collaboration helps to take an existing technological gap. Therefore, the governments of developing countries encourage such collaborations. In developing countries, nigh of the unusual collaborations are technical inwards nature.
3. Marketing collaboration
In example of marketing collaboration, the inflow of unusual goods together with services get got house inwards the domestic (host) country.
market takes place.
In marketing collaboration, unusual fellowship agrees to sell goods produced past times the domestic company.
The unusual fellowship sells these goods inwards its ain province and/or inwards the international market. It uses its distribution network to sell the goods.
From the viewpoint of a developing country, marketing collaboration is really beneficial for increasing its exports of goods together with services.
4. Management consultancy collaboration
In example of management consultancy collaboration, the inflow of unusual administration consultancy takes house inwards the domestic (host) country.
The unusual fellowship likewise helps the domestic fellowship to modernize together with diversify its business process.
So, inwards administration consultancy collaboration, the unusual fellowship increases the administration efficiency of the domestic company. This type of collaboration is institute inwards both mortal together with populace sector.
SUBSCRIBE to Our Newsletter
Sign up here with your email address to receive updates from this blog in your inbox.