Structural and cooperation

Context

The company has a relatively good understanding of the foreign country (industry, market and environment) but does not have the skills, resources or assets required to manage a production and marketing operation on its own. To carry out its plans, the company must seek partners within the host country that can offer their capital, know-how, technology, knowledge, control of the market, etc. The target country's infrastructure, tax incentives, laws protecting property rights, etc., all encourage foreign investors.

Suggested penetration strategy:

• Joint venture
• Reciprocal shareholding