What are the various types of collaborative arrangement options available to international businesses? How can firms most effectively manage international collaborative arrangements?

What will be an ideal response?

Licensing, franchising, management contracts, turnkey operations, joint ventures, and equity alliances are collaborative arrangements. Managing collaborative arrangements effectively is key to better performance. In essence, they must choose partners wisely and learn how better to have synergy between their partners and their own operations. A company can seek out a partner for its foreign operations, or it can react to a proposal from another company to collaborate with it. In either case, it is necessary to evaluate the potential partner not only for the resources it can supply but also for its motivation and willingness to work with the other company. Contracts should be spelled out in detail. Management also should estimate potential sales, determine whether the arrangement is meeting quality standards, and assess servicing requirements to check whether the other company is doing an adequate job. Mutual goals should be set so that both parties understand what is expected, and the expectations should be spelled out in the contract.