Jose Mauricio Morgado Garcia - A01733593

Explain what the concept means and provide an example of a MNC

1.Licensing
2.Franchising
3.Joint Ventures
4.Merge and Acquisitions
5.Subsidiaries

What is a MNC?
It is a corporate that has a presence in at least two countries with its headquarters in its
home country and they have subsidiaries in other nations.

Licensing:
It’s when a brand gives the permits of a specific item like a song, a name, an image,
technology, intellectual property, and many other things that it has in its name in
exchange of a fee. An example of this would be the opportunity to use a singers song for
the promotion of a product.

Franchising:
This is a strategy in which a franchisor and a franchisee partner up to open a brand,
trademark owned by the franchisor but with investment of the franchisee. An example of
this would be McDonalds, Sub way and several more.

Joint Venture:
This is a very strong tool that some companies use to tackle rivals, crisis, to cooperate
each other in a strategic area and sometimes it’s just to gather a bigger customer base. An
example would be when BMW and Toyota co-operate on research into hydrogen fuel
cells and ultra-lightweight materials.

Merge and Acquisitions:

In these types of partners many monopolies are born from the merger of two big
competitors making competition almost impossible for smaller companies. A merger
is when a companies legally consolidate and become one, and a acquisition is when
a company buys another one. An example would be when Live Nation
and Ticketmaster merged in 2010.
Subsidiaries:
A Subsidiaries is when a company has a mini me or a whole different business but is
owned by a parent company. An example of this would be Examples of subsidiary
companies include Instagram, which is owned by Facebook, and YouTube, which
is owned by Google.