Companies also can engage in contractual entry modes. Licensing is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time. Franchising is when a company supplies another with intangible property and other assistance over an extended period. Management contracts involve one company supplying another with managerial expertise for a specific period of time. Turnkey projects involve one company designing, constructing and testing a production facility for a client firm.
Companies can also engage in investment entry modes.
A wholly owned subsidiary is a facility entirely owned and controlled by a single parent company. A joint venture is a separate company that is created and jointly owned by two or more independent entities to achieve a common business objective. Please submit your summaries and link discussions by Friday.