FOREIGN COLLABORATION

PRESENTED BY GAJENDRA

YADAV GOURAV JAIN

DHAREMENDRA SAINI

FOREIGN COLLABORATIONCollaboration with foreign companies has been

fund to haveSpecial appeal as a growth strategy particularly in

developingCountries. A foreign company and a domestic company are

collaborate and started business in host country.

ADVANTAGES OF FOREIGN COLLABORATION

Developing indigenous production of components and spare parts.

Fostering cultural changes with respect to work ethos ,attitude towards discipline.

Improving competitive abilities for domestic and export marketing.

Developing the brand image of products more quickly.

Deriving the benefits of import substation and increased foreign exchange earning.

Enlarging the scale of operations and reducing cost.

BENEFITS OF FOREIGN COLLABORATIONEarnings by way of royalty and fees for

technological collaboration ,supply of drawing and documents , technical and managerial know-how.

Return on financial outlay. Market expansion in countries restricting hard

currancy imports. Tax benefits derived in low-tax host countries.

OBJESTIVES OF FOREIGN COLABORATION1. Foreign Govt. Policy2. Utilization of spare capacity3. Access to cheap resources4. Diversification5. Stability of export6. Tax benefit7. Bandwagon effect

GOVT. REGULATION OF FOREIGN COLLABORATION IN INDIAThe regulatory framework and government policy

with respect the foreign investment and collaboration were spelt out in july 1980 along with the industrial policy statement presented in parliament. The policy was modified in may 1990 , and a new policy initiative announced in july 1991.

ROLE OF FOREIGN COLLABORATION1. Development of competitive spirit2. Addition in business opportunities 3. Development of subsidiaries4. Use of advance technology5. Cultural change6. Foreign capital contribution7. Foreign exchange earning8. Brand image9. Increase in capital formation10.Development of communication

THANK YOU