MANAGEMENT SERVICE CONTRACTS

By: Valeria Cuéllar and Paula García

INITIAL CONDITIONS

It’s method of entry (without direct investment or ownership)

It’s used in countries where goverment insists on complete ownership of firms.

Viable option for foreign expansion.

WHAT’S MANAGEMENT SERVICE CONTRACT?

MAIN PURPOSE

Business owners who just don’t want to run the business by themselves

MSC State all of the details

Agreements to protect both. obligation’s understanding

UNDENIABLE BENEFITS

The client or client government which gains access in:

SUPPLIER’S ADVANTAGES

DISADVANTAGES

Not handle of all aspects The owners isn’t silent

completely. Anyway, they have to address untreated issues.

Management company’s determinations are not the best for owner

A surge of operating expenses.

REFERENCIES

CZINCOTA, Michael, MOFFET, Michael,RONKAINEN, Ilkka. “Fundamentals of international business”. Editorial Thomson, 2004, page 270.

VanBare, Jennifer (2011, march 16) “What are Management Service Contracts?, available in ehow money(online)http://www.ehow.com/info_8067580_management-service-contracts.html

http://www.youtube.com/watch?v=8UrJ_JTFcpM