Model Of Globalization

As McWilliam(2014) said, global business is the buying and selling of goods and services by people from different countries. Global business means the company doing trade internationally that they wish to extend their sales to others countries and gain more profit. Actually it is not that easy to form a global company, we should follow and understand the rules and agreements that involved during the global trading. Therefore, a company which wish to form a global business usually have to follow the phase model of globalization which are exporting, cooperative contracts, strategic alliances and lastly, wholly owned affiliates. The purpose of this research project is to examine the strengths and weaknesses of every single phase model of globalization.

In fact, licensing and franchising has a similarity, which is both of them offer company to earn monthly profits but obviously it still depended on how you managed and operated your business (Gerhardt, S, Hazen, S, Lewis, S & Hall, R 2015, p. 8). Licensing is like giving the rights to someone to produce a product or using its brand name, however, franchising is like open a branch by using its brand name or business model (William, C 2014). Actually the business which operated by licensing method usually can consider as a cheaper choice than the franchising business (Gerhardt, S, Hazen, S, Lewis, S & Hall, R 2015, p. 8). So the advantage of licensing obviously is the less production cost. For example, However, the disadvantage by using licensing method to operate a business is the licensor may lose their power to control what and how their licensee doing their business in different countries (William, C 2014). For

It means a new and independent company that form by two existing companies’ collaboration (William, C 2014). That means both of them have to share the risk they face and pay off their responsibilities together. Joint Venture brings advantages to the small local business. The joint venture usually involve between a big company and small local businesses. This is because the small local business can gain a lot of advantages from the big company, such as the experience and opinion from the senior For example, However, the problems in ownership and leadership may occur to the joint venture