- Sales through legal agents on payment of commission;
- Recourse to international trading companies. These are very well developed in
some countries. - Multinational firms may also consider exploring the possibility of seeking
assistance of well established companies on foreign markets for sales network.
Through a license agreement, a firm confers right to a foreign company to manufacture
its products. This right may be exclusive or non-exclusive. It may relate to patents,
brands or models, a technological process, copyrights, etc. In exchange for this right, the
firm receives a financial compensation.
A license agreement provides to a firm the possibility of obtaining incremental revenue
by allowing its products to be manufactured abroad. This is particularly true when the
firm on its own cannot produce abroad due to lack of necessary capital.
A License agreement is particularly very useful in a case where a firm is not in a position
to invest directly in a country in view of trade or other restrictions.
- Franchise agreements
A franchise contract means that a company owning rights on brands, etc. places at the
disposal of another company:
- Technical or commercial know-how;
- A line of products or services to be sold according to the same marketing
techniques, as already experimented by the franchisor.
The franchise agreements, first developed on national levels, have subsequently
developed beyond the national frontiers.
A franchise agreement requires contribution on the part of two contracting parties, the
franchisor and franchisee. The franchisee brings in his means, namely capital, sale
points, etc. He ensures the management. He commits himself to respect the marketing
norms and management norms of the franchisor. He pays an entry fee and a periodic
rent, calculated on the basis of turnover.
- International management contracts
By a management contract, a firm helps another firm to accomplish general or specialized
management tasks during a certain period in consideration of payment. These contracts
are often demanded by the government of a country that has expropriated an enterprise
but wants to maintain technical service.
Such contracts may facilitate the company furnishing technical assistance an access to
some raw materials.