The aspect of Licensing is considered to be one of unique internationalization strategies, which are used by various companies around the world for the purpose of expanding their business in developed economies. The degree of risk involved in the internationalization strategy of Licensing is limited in nature, as the licensee in the foreign country receives different types of protection that in the form of trademark rights, copyrights, and patent rights etc. Similarly, the licensee in return is required to adhere to the following processes of paying the licensor fees and royalties on the sales volume, advertise and market their products within the stipulated territories and manufacture the licensor’s product. This type of internationalization business strategy is very useful for developing economies as allowing foreign companies to enter their market would allow them to use their technology and resources for their own economic development. According to Meyer and Tran (2006), it was observed that both the researchers have focused on discussing how companies from developed economies are using the strategy of licensing to enter emerging economies of the world. In this article, the business of Carlsberg Breweries has been discussed to see how the management of the company has been developing their global strategy through the process of implementing licensing strategy to enter the market of China (Meyer and Thu Tran, 2006).
It is the most common internationalization strategies which are followed by major business organizations around the world. In this strategy, the companies from either emerging or developed economies look to export their product and services with an aim to expand their business in the foreign country. There are basically two types of exporting which are implemented in the business operations such as Direct Exporting and Indirect Exporting. The major difference that exists between direct and indirect exporting is that direct exporting directly involves the company to market its products and services in the foreign market whereas, in indirect exporting, marketing of product and services are carried out by third-party agents. According to Dado, Wiktor and Zbikowska (2015), it was seen that the researchers have aimed at highlighting how companies in Poland are using implementing the internationalization strategy of exporting to expand their business in the foreign country. Furthermore, the benefits of internationalization strategy of exporting have been discussed to see how it is benefiting Polish traders and exporters in the country (Ďaďo, Wiktor and Źbikowska, 2015).