What are Types of Foreign Collaboration?
The iv principal types of blogspot.com//search?q=what-is-foreign-collaboration">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 hold farther to verbalize over each type of unusual collaboration.
1. Financial collaboration
In illustration of financial collaboration, the inflow of unusual blogspot.com//search?q=what-is-foreign-collaboration">investment takes house inwards the domestic (host) country.
blogspot.com//search?q=what-is-foreign-collaboration">finance by:
- (a) Purchasing ownership shares
- Here, unusual fellowship purchases ownership shares of the domestic fellowship as well as inwards render gets the dividend for these shares.
- (b) Giving long-term loans
- Here, unusual fellowship gives long-term loans to the domestic fellowship as well as 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 as well as machinery.
Thus, inwards this collaboration, at that topographic point is an inflow of finance from developed countries to developing countries.
Generally, it is seen that developing countries confront blogspot.com//search?q=what-is-foreign-collaboration">fiscal problems. Financial collaboration comes equally an assist to solve these problems, as well as therefore, it is real pop inwards the developing countries.
2. Technical collaboration
In illustration of technical collaboration, the inflow of unusual engineering scientific discipline takes house inwards the domestic (host) country.
Technical collaboration includes integration of unusual engineering scientific discipline alongside domestic (indigenous) technology.
In technical collaboration, the unusual fellowship provides technological know-how, professional person services as well as expertise, installs automated machineries, etc., inwards the domestic country. Here, an inflow of modern engineering scientific discipline takes house from the developed province to the developing country.
Technical collaboration helps to withdraw an existing technological gap. Therefore, the governments of developing countries encourage such collaborations. In developing countries, well-nigh of the unusual collaborations are technical inwards nature.
3. Marketing collaboration
In illustration of blogspot.com//search?q=what-is-foreign-collaboration">marketing collaboration, the inflow of unusual goods as well as services conduct hold house inwards the domestic (host) country.
blogspot.com//search?q=what-is-foreign-collaboration">market takes place.
In marketing collaboration, unusual fellowship agrees to sell goods produced yesteryear 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 real beneficial for increasing its exports of goods as well as services.
4. Management consultancy collaboration
In illustration of blogspot.com//search?q=what-is-foreign-collaboration">management consultancy collaboration, the inflow of unusual administration consultancy takes house inwards the domestic (host) country.
blogspot.com//search?q=what-is-foreign-collaboration">Production management.
The unusual fellowship likewise helps the domestic fellowship to modernize as well as diversify its blogspot.com//search?q=what-is-foreign-collaboration">business process.
So, inwards administration consultancy collaboration, the unusual fellowship increases the administration efficiency of the domestic company. This type of collaboration is establish inwards both somebody as well as world sector.
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