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Contractual and cooperation


The nature of the product or the activity does not lend itself to exportation since transaction and/or switching costs are too high. The company has a relatively good knowledge of the foreign country. Because of the complexity of the product and level of control required, the company must increase its role in the delivery process. Collaboration with a local partner is recommended. Tax provisions and laws protecting property rights are adequate.

Suggested penetration strategy:

  • Cross licensing
  • Franchise
  • Consortium