Integration of the foreign and the domestic market. Marketing Collaboration: The in-flow of foreign goods and services takes place in the host country.Helps to remove the existing technological gap and inflow of modern technology in the domestic country. Various services are provided by the foreign company such as professional services and expertise, installation of automated machinery in developing countries, and many more. Integration of foreign technology with domestic technology. Technical Collaboration: The inflow of foreign technology takes place in a foreign country.Financial Collaboration: The in-flow of foreign investment takes place in the host country.Indian companies are interested in foreign counterparts since the foreign market may provide them with technical and market expertise. A foreign partnership is extremely beneficial in addressing resource shortages and obtaining advanced technology at a low cost.ĭue to the consequences of liberalization, privatization, and globalization, foreign participation in the Indian market is rapidly rising. Interdependence between countries is a common phenomenon. The term of the foreign collaboration is specified in written form.Īs no country is self-sufficient, all countries are reliant on one another to satisfy their needs.After establishing foreign collaboration entities start a business together in the domestic country.A signature acts as a written acceptance of each other’s expectations, terms, and conditions. After obtaining necessary permission, individual representatives of resident and non-resident entities sign the preliminary agreement.During the ongoing process of seeking permission, collaboration entities prepare a preliminary agreement.Before starting collaboration both entities must seek prior permission from the governmental authority of the domestic country.Strategic alliance between one or more resident and non-resident entities.Important points to convey the meaning of foreign collaboration: It is an inflow of foreign capital and technology for the host country which is backed by commercial considerations of profit and private expectations. The central concept of foreign collaboration is joint participation between host and foreign countries for the establishment of an organic form of enterprise in the host country involving profit-seeking relationships. Foreign collaboration is an alliance (union or an association) incorporated to carry on the agreed tasks collectively with the participation of the resident and non-resident entities.
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