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Transcript of Franchising
What is frachising?
Frachising is a kind of pattern in commercial operation. It´s often used by multiple shops styles to manage one company's own brand.
What is the main focus of frachising?
Example: KFC gives the power and their brand to the agent company in China, in order to encourage them invest and open more shop in China to develop their oversea market.
increase the business scale, developing the oversea market and gain a higher profit.
Trade barriers/obstacles are government-induced restrictions on international trade.
For example, if an American company want to has franchisee food shop in China,like KFC. The Chinese Food Inspection Agency tests for its safety . Also, product labelling must comply with Canada’s official language policy.
The dependence of International Business.
From the entire world, the trade dependence of countries showed increasing trend. According to statistical data about the history and the World Bank, from 1820 to 2003, the world's export dependence rose from 1% to 20.8%, the long-term upward trend is obvious. Moreover, this trend has become more apparent in the contemporary. From 1820 to 1950, the world's dependence on exports rose by just 6 percentage points; while from 1950 to 2003, the world's export dependence has increased by nearly 14 percentage points.
Brazil's agricultural output accounted 8% of the national GDP, employing a quarter of the labor force, more than 6 million businesses. Brazil is the world's largest sugar cane, coffee, exporter, is a net exporter of cocoa, soybeans, orange juice, tobacco, forest products and tropical fruits and nuts class. Livestock account for an important position. Brazil is a net exporter of agricultural products and foodstuffs, accounting for 35% of the country's exports.
Three styles of management
1. Voluntary Chain
2. License Chain
3. Franchise Chain
An example would be cheese that is exported from scotland that costs $100 per pound now costs $120 due to taxes. Consider about the cost, after pay the taxes,the company will get low interest rate
Frachising can bring a lot of benefit and it will let one company get a longer development in the future.
Exports to China plunged Japan's economy was like "painful experience."
October 22, 2013, the Japanese Finance Ministry announced the initial trade statistics show that Japan's exports to China in September fell 14.1 percent, which is Japan's trade founding a tremendous pressure.
Japan's Kyodo News analysis pointed out that the European debt crisis led to a global economic slowdown, Japan's exports continued to slump. On the other hand nuclear power plant outage caused import liquefied natural gas (LNG) and crude oil led to Japan's long-term sustainability in the high trade deficit increased in the first half year.
Introduction, example by Derrick& Taul
Trade barriers by Louise
Powerpoints by Roman
Conclusion by Marino
By Derrick, Taul, Roman, Louise and Marino
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