Management service contracts (1)
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MANAGEMENT SERVICE CONTRACTS By: Valeria Cuéllar and Paula García
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Transcript of Management service contracts (1)
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
