Foreign collaboration is a partnership between a domestic and an international entity. It involves the free flow of capital, technology, and other resources from one country to another for mutual benefit. The central concept of foreign collaboration is joint participation between host and foreign countries for the establishment of an organic form of enterprise in the host country involving profit-seeking relationships. In other words, it is an inflow of foreign capital and technology for the host country which is backed by commercial considerations of profit and private expectations.
Foreign collaboration can take different forms, including joint ventures, licensing agreements, and marketing collaborations. Joint ventures involve the creation of a new entity by two or more companies, while licensing agreements allow a foreign company to use a domestic companys intellectual property in exchange for royalties or other compensation. Marketing collaborations involve the agreement where the foreign collaborator agrees to market the products of the domestic company in the international market.
Foreign collaborations can be classified into different types, including financial collaboration, technical collaboration, marketing collaboration, and others. Financial collaboration involves the investment of foreign capital in a domestic company, while technical collaboration involves the transfer of technology from a foreign company to a domestic company.
