Franchising and Self-Initiated Expatriates

Franchising 

Franchising involves the franchisee paying fees and royalties to the franchiser for the use of the company’s trademark and sell products or services in a foreign market. One of the main advantages of the venture is the capitalization on a successful strategy. The franchising company is not exposed to many risks in the foreign market because the franchisee has a good understanding of the local market as it has been operating within the market. The issue of the business culture is one of the main challenges that businesses are able to deal with through franchising. Entering a market with a different culture may be difficult for a company due to the high cost that may be incurred in employing locals and training expatriates on how to perform in the foreign country. Franchising enables a company to use the infrastructure and employees of the local company, which increases the chances of success. 

Self-Initiated Expatriates 

One of the main differences between the self-initiated expatriates and the rest is the adjustment to general aspects characterizing the host country. It is clear that the self-initiated expatriates move to a country of their choice and in most cases is in love with the culture of the host country. This makes it easy for them to interact better with the nationals of the host country. Most of the self-initiated expatriates are younger, unlike organizational expatriates. They also have a higher organizational mobility as they view the expatriate venture as a way to attain self-development. The other difference is that the self-initiated expatriates have higher expectations of their international experience and always ask for higher benefits in the career paths they take. Consequently, self-initiated expatriates have a stable career orientation despite the age. They are also more likely to take up roles that are not in line with their career paths as compared to the traditional expatriates sent by the mother companies to complete a specific task.