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Chapter 2: Types of BusinessesInternational Business Structures

A number of different business structures allow businesses to expand into international markets.

Joint VenturesA joint venture can match the skills and expertise of two different individuals or businesses to generate more benefits for both parties.

International FranchisesAn international franchise is a way to achieve an international presence by buying the rights to a chain operation from the franchiser.

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Chapter 2: Types of BusinessesForms of Business Ownership

Strategic Alliances

Strategic alliances occur when two or more businesses agree to commit particular resources to achieve a common set of objectives. Alliance partners remain separate and entirely independent of each other.

Mergers

Mergers happen when two or more companies join together: one of the businesses usually wants to purchase a controlling interest in the other company, or both business have combined interests.

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Chapter 2: Types of BusinessesForms of Business Ownership

OffshoringOffshoring relocates some of a company’s operations to anothercountry. Usually this happens to take advantage of lower labour costs, to be closer to large and emerging buyer markets, and to have access to skilled workforces.

Multinational CorporationsA business enterprise that conducts business in another country orseveral different countries is a multinational corporation. Amultinational corporation offers different benefits to the country it investsin. Some positive benefits include new jobs and training for people.Negative consequences could be less pay and more financial instability for citizens of that country.