These types of entry modes consist of several similar, but different contractual arrangements between the domestic market firms and the firm licensing the intangible assets into the foreign market (Bradley 2005: 243). (1994: 86) mention licenses, franchises, technical agreements, service contracts, management contracts, construction/turnkey contracts, co-production contracts and others. As a business, you enter into a sort of partnership with another business located in a different market than yours. The aim is to improve the long-term competitiveness of the alliance partners and is based on the belief that each party has something unique to bring to the partnership. For this to work, there must be mutual benefits, shared control and power (Albaum & Duerr 2008: 373). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Licensing: Root (1994:86) describes licensing as the transfer of intangible assets that are not subject to import restrictions. Licensing occurs when a company provides other companies in a foreign market with the technology they need, for a fee or royalty (Bradley 2005: 243). This form of licensing involves one or a combination of brand name, operational expertise, manufacturing process technology, access to patents and trade secrets according to Bradley (2005:243). The company that participates in a licensing partnership gains access to a foreign market with a very low investment cost and obtains market knowledge from an established and competent local company. According to him, there are two ways to enter into licensing agreements, namely current technology licensing and current and future technology licensing. The differences between the two are that the former only gives the licensee access to current technological advancements. The second provides access to existing and future technological development in the area of ​​their agreement. Businesses using this method of entry must be careful not to be robbed of what is rightfully theirs and then lose the right to exclude due to high legal fees and unclear laws. Franchise: The franchise is a derivative of the license where the commercial format is that of licenses. instead of technology (Bradley 2005: 246). Bradley (2005: 246) also explains that this form of business is not new, although it has received a lot of publicity in recent times. On the other hand, it is a well-established way of doing business in the United States. Franchising is what is called intellectual property right, and intellectual property rights (IPR) are formal regulations that have the power to establish ownership as intellectual assets. Maskus (1998: 186) defines intellectual property as follows: “Intellectual property (IP) is an asset developed by inventive or creative work, to which the law has granted the right to exclude its unauthorized use. The international exploitation of intellectual property is essential for trade, foreign direct investment (FDI) and technology licensing across borders. Furthermore, Maskus (1998:187-188) argues that this type of regulation is necessary to protect vulnerable information from overuse and free riders. In franchise packages, trademarks, copyrights, patents and other elements are often included. It is a form of distribution and marketing in which one company gives the other company the right to makebusiness in a protected manner (Bradley 2005: 246). Contract Manufacturing:- This mode of entry is a cross between licensing and investment entry. The company hires a company in the foreign market to assemble or manufacture the products, but it remains responsible for the marketing and distribution of the products according to Root (1994: 113); Albaum & Duerr (2008: 380). This mode of entry requires a minimum investment of money, time and management talent; it also allows rapid entry into a new market Albaum & Duerr (2008: 380). On the other hand, this also presents formidable potential disadvantages such as: the training of potential competitors who have access to know-how and high quality products (Root 1994: 113), plus the profit from manufacturing is transferred to the contractor. Management contracts: - The international management contract gives the company the right to control the day. -daily operations in a company located in a foreign market. This contract often does not give them the right to make decisions regarding new capital investments, policy changes, assume long-term debts, or change ownership arrangements, according to Root (1994: 114); When a manufacturer wishes to enter into a management contract, it rarely does so independently of other arrangements (Root 1994: 114). Turnkey Projects: - In a turnkey project, the entrepreneur designs and builds a factory, sets up production activities, sources raw materials and trains employees. The entire project is then handed over to the contracting company after a trial run (Ball et al., 2008). Turnkey projects allow companies to use their skills and bring in other companies to complete tasks that they cannot accomplish alone. Due to the high value of these projects, government and political reasons are often involved. There is always a threat of skills being transferred to other companies and giving rise to competition in existing markets as well as other foreign markets (Wild, Wild & Han, 2008). Modes of Investment When a company decides to move most or all of its operations to foreign markets, it goes through different stages of internationalization. Investment entry modes have several names in business management, such as sole proprietorship, foreign direct investment, wholly owned subsidiary and wholly owned subsidiary. A significant investment in a new country can be made as a sole proprietorship with a new location or as an acquisition of a sole proprietorship and also as a joint venture according to Root (1994: 6). The only mode of business is high investment which also carries high risks and possibilities of high returns (Agarwal & Ramaswami 1992:3). In sole proprietorship mode, a company attempts to develop a foreign market by investing directly in this market (Agarwal & Ramaswami 1992: 11). Foreign Direct Investment (FDI): - The Organization for Economic Co-operation and Development (OECD) defines foreign direct investment (FDI) as “a category of investment that reflects the objective of establishing a lasting interest from an enterprise resident in an economy (direct investor) to an enterprise (direct investment enterprise) which is resident in an economy other than that of the economy”. direct investor” (OECD: 7). This mode of entry provides a high degree of control over international affairs in the host country (Chung & Enderwick 2001: 444; Bradley 2005: 269). This is a mode of high financial commitment, but also a transfer of 2005:249).