INTERNATIONAL FINANCES

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Foreign Direct Investment is made with three main objectives: -Exploitation of new markets -Adquiring strategic actives -Advantageous economic factors FDI also serves the purpose for companies to start or expand operations in new countries taking advantage of scale economies. There are many incentives to make investments in other countries, some may inlcude: -Special economic zones -Lower taxes -Preferential tariffs

Foreign Direct Investment (FDI) is a form of investment in which a company or a person invests actives for another company in another country. The investments are made generally in the agricultural sector or light industry.

WILSON FERLEY ALVAREZ CRISTANCHO-LUIS HONG DA CHEN LI

DIRECT INVESTMENT

The reasons for a company to decide for external development: -Economic reasons: *Cost reduction : Through economies of scale and / or economies of scope by integrating two companies whose productive, commercial systems are complementary to each other, generating synergies . *Get new resources and capabilities by joining or acquiring another company. -Reasons for market power: *It may be the only way to enter an industry and / or a country , by having strong barriers to entry .

Operation of buying and selling of packages of shares between two companies, preserving the legal personality of each one of them.

Characteristics of the Joint venture contract: -It is an unnamed Business Collaboration Contract . -Companies maintain their own individual , which means the opposite of the merger.Companies are preexisting. -Through this contract, the parties seek a common utility . -There is a contribution to losses, profits, functions and investment.

ACQUISITIONS

A joint project or joint ventureit is a contractual agreement between two or more parties with the purpose of executing a business project in which the parties agree to share the resulting gains and losses, as well as the formation of capital and the contribution of productive factors or the operational costs of the company. A joint project is similar to an association, but it differs in the sense that there is generally no intention to continue the relationship once the project that gives rise to it ends

JOINT VENTURE

Distribution franchise The franchisor acts as a distributor or reseller of its products manufactured by other companies. In reality, its activity is that of a central purchasing office, since the true distribution will take place through a network of franchisees.

Production franchise It is the franchisor himself who manufactures the products that the franchisees sell. This type of franchise allows the franchisor manufacturer to ensure the sale of a part of its production, since franchisees are obliged to purchase their products exclusively.

Industrial Franchise It is a form of business collaboration between manufacturers, both the franchisor and the franchisee are industrial. Contract by means of which the franchisor assigns to the franchisee, apart from the How Know, the right of manufacture of its corresponding brand and the commercialization of the manufactured products,

The permission that gives someone the rights to exploit a product , a brand or an activity

FRANCHISE OPPORTUNITIES

LICENSES SALE

It is about licensing your products or services to other companies. It is considered an alternative to export and is usually done when a company does not have financial or human resources to implement in a particular market or in cases where it cannot exchange with the country of destination due to various reasons.

Investing is the act of allocating funds to an asset or committing capital to an endeavor with the expectation of generating an income or profit. In colloquial terms, investing can also mean putting in time or effort - not just money - into something with a long-term benefit, such as an education.

INTERNATIONAL FINANCES