In case of franchising, the firms offer licensing and permission to use the company name and products and its manufacturing techniques and in return the franchisor gets paid by the franchisee. Finally in case of joint venture, the company makes business collaboration with one of the firms in the host country, which makes it easier for them to operate in a foreign land with reduced risk (Lee, Madanoglu and Jae-Youn, 2013).The multinational firms (or multinationals) are the ones that are characterized by their presence in multiple overseas locations. These companies are headquartered in a particular nation but they make several geographic expansions to expand their market reach. The choice of internationalizing a business can arise from several factors (Peterson, 2009). The multinationals also face certain political and legal factors. The political factors largely influences the operational activities of the firm as it is mostly determines the trade regulations of that the firms are exposed to. The political relationship between the host and home country also determines whether or not the firm will be able to commence overseas business activities without any hassle. A stable political relationship favours international trade. The legal framework of the host country dictates the boundaries for the foreign firms. The legal boundaries often restrict the business operations of the companies which in turn may impact its revenue generation and its operational activities (Styles and Wilkinson, 2012).Thus it can be stated that the multinationals can only succeed if they are capable of adapting to the difference in the market environment of the host nation. The multinationals also bear certain characteristics apart from being present in several overseas locations. These firms are capable of leveraging high economies of scale by increasing their production volumes in a resource efficient manner (Filippov, 2010). The multinationals often adopt different internationalization approaches depending on their business activities and the market environment. The most two most important strategies are the adaptation and standardization. The adaptation allows the firms to make necessary changes in the marketing mix and its business strategies so that the company can meet the preferences and needs of the target customers. This strategy is quite important from the point of view of
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