International Business Arrangements Used by Cooperatives

Bruce J. Reynolds and Karen J. Spatz

No 313029, Research Reports from United States Department of Agriculture, Rural Development

Abstract: U.S. farmer cooperatives have established various organizational and contractual arrangements with foreign firms to expand their global marketing capabilities. However, unlike many U.S. food processing firms, cooperatives have minimal involvement with foreign direct investment (FDI). The comparatively small involvement of cooperatives with FDI is related to their distinctive requirements for member control and performance monitoring. As alternatives to FDI strategies for global marketing, cooperatives have established several types of alliances with foreign firms. These arrangements are often referred to as coventures, franchise partners, or strategic alliances. Various contractual arrangements, including intellectual property licensing, make it possible for many cooperatives to accomplish effective branded products distribution in major foreign markets. Some cooperatives have also developed significant networks of foreign sales agents and have established effective working relationships with these agents.

Keywords: Agribusiness; International Relations/Trade; Marketing (search for similar items in EconPapers)
Pages: 22
Date: 1991-10
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:urdbrr:313029

DOI: 10.22004/ag.econ.313029

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