Movie Case Study
The scene from the movie Hum Aapke Hain Kaun shows Rajesh Nath (played by Mohnish Behl) excited about the news of the scheme that he had proposed. It is accepted by foreign collaborators. In this blog, Learning Perspectives will explore the meaning of foreign collaborators.
What is Foreign Collaboration?
Foreign collaboration is a partnership between a domestic and an international entity. It involves the free flow of capital from one country to another. It is also referred to as a strategic alliance. These collaborations are generally done to share technological advancements, financial or marketing skills, and expertise. This partnership is undertaken for the mutual benefit of both parties.
Types of foreign Collaboration
Foreign collaborations can be of four types.
Technical Collaboration
This collaboration is undertaken to provide technical know-how to the less developed country. This helps the country to develop its capabilities and skills in that domain. This collaboration also helps in achieving research & development at a competitive cost.
Marketing Collaboration
This collaboration creates export opportunities for the domestic country. International entity helps in marketing the products of the domestic country in global markets. This opens up many business opportunities for the domestic country.
Financial Collaboration
This collaboration means foreign investment flowing into the domestic country in the form of capital for the domestic country company. This is called foreign financial collaboration.
Consultancy Collaboration
Consultancy collaboration includes providing consultant services to the international country. These could be in the areas of finance, marketing, human resources, finance & accounting, etc. These collaborations can take the form of mergers, acquisitions, joint ventures, and amalgamations.
Example
Tata global beverage collaborated with Starbucks. This was a strategic move as it opened many new business opportunities for TATA. TATA group and Starbucks also share the same business values which relate to commitment to the community.
Advantages of foreign collaboration
It helps in achieving financial growth for both collaborating parties. The domestic company stands to achieve a better reputation and monetary gain.
A big project might help the domestic country to make progress by generating employment in the country.
Foreign collaborations help in the optimum utilization of resources. International countries come close together with these collaborations.
