management service contracts (1)
TRANSCRIPT
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MANAGEMENT SERVICE CONTRACTS
By: Valeria Cuéllar and Paula García
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INITIAL CONDITIONS
It’s method of entry (without direct investment or ownership)
It’s used in countries where goverment insists on complete ownership of firms.
Viable option for foreign expansion.
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WHAT’S MANAGEMENT SERVICE CONTRACT?
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MAIN PURPOSE
Business owners who just don’t want to run the business by themselves
MSC State all of the details
Agreements to protect both. obligation’s understanding
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UNDENIABLE BENEFITS
The client or client government which gains access in:
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SUPPLIER’S ADVANTAGES
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DISADVANTAGES
Not handle of all aspects The owners isn’t silent
completely. Anyway, they have to address untreated issues.
Management company’s determinations are not the best for owner
A surge of operating expenses.
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REFERENCIES
CZINCOTA, Michael, MOFFET, Michael,RONKAINEN, Ilkka. “Fundamentals of international business”. Editorial Thomson, 2004, page 270.
VanBare, Jennifer (2011, march 16) “What are Management Service Contracts?, available in ehow money(online)http://www.ehow.com/info_8067580_management-service-contracts.html
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