Section 5
Types of International Business
By Boundless
When considering strategic entry into an international market, licensing is a low-risk and relatively fast foreign market entry tactic.
![Thumbnail](../../../../../../figures.boundless-cdn.com/34376/square/94gawcw1s0gu2pcflmu8.jpg)
Franchising enables organizations a low cost and localized strategy to expanding to international markets, while offering local entrepreneurs the opportunity to run an established business.
![Thumbnail](../../../../../../figures.boundless-cdn.com/4276/square/8c-4d24-4571-b8a4-da0718bda0b9.jpg)
Exporting is the practice of shipping goods from the domestic country to a foreign country.
![Thumbnail](../../../../../../figures.boundless-cdn.com/30908/square/800px-singaporeport1.jpeg)
Imports are the inflow of goods and services into a country's market for consumption.
![Thumbnail](../../../../../../figures.boundless-cdn.com/16348/square/ss-corporation-manufacture.jpeg)
In contract manufacturing, a hiring firm makes an agreement with the contract manufacturer to produce and ship the hiring firm's goods.
![Thumbnail](../../../../../../figures.boundless-cdn.com/15912/square/sony-ericsson-sign.jpeg)
In a joint venture business model, two or more parties agree to invest time, equity, and effort for the development of a new shared project.
![Thumbnail](../../../../../../figures.boundless-cdn.com/14589/square/business-20outsourcing.jpg)
Outsourcing business functions to developing foreign countries has become a popular way for companies to reduce cost.
![Thumbnail](../../../../../../figures.boundless-cdn.com/16328/square/ldwide-offshoring-business.jpeg)
Offshoring entails a company moving a business process from one country to another.
![Thumbnail](../../../../../../figures.boundless-cdn.com/16305/raw/ford-logo.jpg)
With the advent of improved communication and technology, corporations have been able to expand into multiple countries.
![Thumbnail](../../../../../../figures.boundless-cdn.com/4280/square/c5-2e6d-4e2e-a38a-54a8a54be8a4.jpeg)
FDI is practiced by companies in order to benefit from cheaper labor costs, tax exemptions, and other privileges in that foreign country.
Countertrade is a system of exchange in which goods and services are used as payment rather than money.