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Foreign Collaboration

Foreign collaboration is an agreement between companies or governments from different countries to work together on a project. There are several forms of foreign collaboration, including financial, technical, marketing, management, and joint ventures. Foreign collaboration can provide benefits like economic development, access to resources and technology, professional management, and foreign exchange for developing countries. However, it can also pose risks like benefiting developed countries more, using obsolete technology, and political interference.

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Rohit Mathias
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532 views7 pages

Foreign Collaboration

Foreign collaboration is an agreement between companies or governments from different countries to work together on a project. There are several forms of foreign collaboration, including financial, technical, marketing, management, and joint ventures. Foreign collaboration can provide benefits like economic development, access to resources and technology, professional management, and foreign exchange for developing countries. However, it can also pose risks like benefiting developed countries more, using obsolete technology, and political interference.

Uploaded by

Rohit Mathias
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FOREIGN COLLABORATION

 INTRODUCTION:
Foreign collaboration is an agreement between two companies from
different countries or two countries for mutual help.
Foreign collaboration is also known as “JOINT VENTURE”, wherein
joint means “Together” and venture means ”Project”.
It is a type of partnership at an international level. Collaborations are
entered into by enterprises from developing countries and developed
countries.

 COLLABORATION AGREEMENT CAN BE ENTERED INTO


1. At government to government level. Eg: GOI with the Government
of USSR.
2. By a private and a public company.
3. By two or more private companies from different countries.
4. By two or more private companies from domestic countries.
 FORMS/TYPES OF FOREIGN COLLABORATION:
. FINANCIAL COLLABORATION:
Capital is passed on from the capital rich country/company to the company
which is need of capital in order to execute their business plans.
2. TECHNICAL COLLABORATION:
Here, the transfer of the latest technology from the developed countries
to the developing countries takes place.
3. MARKETING COLLABORATION:
Here, the foreign partner takes care of marketing the goods through their
marketing network which is manufactured by the domestic partner.
4. THREE-WAY COLLABORATION:
Three different countries come together for a particular venture.
5. MANAGEMENT CONSULTANCY COLLABORATION:
Here, the recent management skills and know how is passed on to the
recipient countries company.
6. JOINT VENTURES FOR MARKETING AND FINANCING:
Here, the collaboration is for dual purpose i.e, for providing necessary finance
and also to help in marketing the products manufactured by the collaborating partner.
 BENEFITS OF FOREIGN COLLABORATION TO THE
DEVELOPING COUNTRY AND COMPANY:
1. ECONOMIC DEVELOPMENT.
2. BRIDGES RESOURCE GAP.
3. RESOURCE UTILISATION.
4. QUALITY AND EFFICIENCY.
5. SPREADS THE RISK.
6. BETTER RELATIONS.
7. TRANSFER OF CAPITAL.
8. TRANSFER OF TECHNOLOGY.
9. PROFESSIONAL MANAGEMENT.
10. FOREIGN EXCHANGE
11. COMPETITION.
BENEFITS OF FOREIGN COLLABORATION TO THE
DEVELOPED COUNTRY AND COMPANY:

1. RESOURCES AT CHEAPER RATES.

2. CAPACITY UTILISATION.

3. SPREADS THE RISK.

4. RECOVER R&D COST.


DEMERITS OF FOREIGN COLLABORATION TO THE
DEVELOPING COUNTRY AND COMPANY:
1. BENEFITS DEVELOPED COUNTRIES.

2. DESTROYS DOMESTIC MARKET.

3. PROFIT MOTIVE.

4. OBSOLETE TECHNOLOGY.

5. DRAIN OF FOREX.

6. POLITICAL INTERFERENCE.

7. THREAT TO NATIONAL SECURITY.


DEMERITS OF FOREIGN COLLABORATION TO THE
DEVELOPED COUNTRY/FOREIGN COLLABORATOR
AND COMPANY:

1. HIGH TAXES.

2. FEAR OF NATIONALIZATION.

3. INSTABILITY.

4. LOW RETURNS.

5. SOCIAL AND CULTURAL GAP.


THANKING YOU.

ROHIT MATHIAS.
VARSHA BIRADAR.
ZEAL LILANI.
POOJA GUPTA.
RADHIKA NADAR.

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