Currency Interest rates Taxation systems Government regulations Language Culture Uncertainties LICENSING -ADVANTAGES Less risk No investment needed Assured returns Less uncertainty local licensee Less fear of govt. controls Good for host country LICENSING- DIS ADVANTAGES Quality cannot be assured Nurturing a competitor abroad Reduced opportunity to enter and establish business T echnology sha ring T echnology theft Use of assets Licensing of intellectual property Royalty Patents Trademarks Technology Export of intangibles FDI-ADVANTAGES Locals partner knows the domestic business environments better Easy management Easy access to local market Good image for both Can abide by local rules and regulations RISK Local partners interference Difficulty to ensure quality Supremacy of local partner Repatriation limitations challenges Global business
