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Companies
seeking to establish an initial business presence in a foreign
country frequently prefer to take their first step in the form
of a strategic alliance. This smart alternative produces a relationship
in the target country rather than entering immediately into an
acquisition transaction. Usually these alliances build two-way
streets - that is to say, benefits flow to both parties when these
alliances are successful and productive.
Cross-border
examples include:
- Marketing
and distribution agreements.
- Manufacturing
joint ventures.
- Licensing
and cross-licensing transactions.
- Minority
investment stakes.
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