Question

When a company globalises, it tries to choose the best method to enter its overseas markets. Match the methods below to the definitions. Use a good dictionary, such as the Longman Business English Dictionary, to help you. 1 acquisition ----- 2 joint venture 3 consortium 4 franchising 5 licensing

Answer 1

When globalizing, companies choose strategies like acquisition, joint venture, consortium, franchising, and licensing to enter new markets. Each method has its own characteristics, such as control of the business, the degree of investment, and the sharing of revenues and costs.

Step-by-step explanation:

When a company globalizes, it often selects one or more methods to enter overseas markets. Below are the methods matched with their definitions:

Acquisition: This occurs when one firm purchases another, leading to a change in management and control of the acquired firm. It can result in business growth and often includes the integration of different corporate cultures and systems.

Joint venture: Two or more companies create a new entity by contributing equity. They share revenue, expenses, and control of the company. This method is often used to enter foreign markets by collaborating with a local partner.

Consortium: Similar to a joint venture, a consortium is a group of companies that collaborate on a specific project without forming a new company. This temporary collaboration is generally formed for leveraging large-scale resources or expertise.

Franchising: A method where a business allows another party to operate a business using its brand name, systems, and proven business model in exchange for a fee. It is a common method for businesses to expand internationally.

Licensing: A company permits another to use its intellectual property, such as patents, trademarks, or technology, in exchange for a licensing fee. This can be a way to enter new markets with minimal investment.

Globalization often involves expansive strategies like mergers and acquisitions, which can increase the size of a company, improve efficiency, and expand product lines.

Answer 2

Step-by-step explanation:

When a company globalises, it tries to choose the best method to enter its overseas markets. Match the methods below to the definitions.

1 acquisition

An acquisition is when one company purchases most or all of another company's shares to gain control of that company. This is achieved by purchasing more than 50% of a target firm's stock and other assets.

2 Joint Venture

A joint venture (JV) is a business arrangement in which two or more companies agree to combine their resources for the purpose of accomplishing a specific business purpose.

3 Consortium

A consortium is an association of two or more companies, with the objective of participating in a common activity or for achieving a common goal.

4 Franchising

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion.

It refers to a situation where an already established business gives permission to another company in another place to sell its products or services.

5 Licensing

A business arrangement in which one company gives another company permission to manufacture its product for a specified payment.