Economics and International Business Law Study

REPORT 2
Executive Summary
Expansion of a business is a key choice, which has to be made in a careful manner, after
evaluating the pros and cons of the available options before the company. In order to expand the
business in a foreign nation like Singapore, the ABC Ltd company has the option of using
agency, distributor or joint venture as the type of legal relation. Each of these is marked with
different benefits and has different shortfalls. Agency and distributor are two terms which are
often used interchangeably, but differ in huge manner. The first part of this report would
highlight these differences, particularly in context of their advantages and disadvantages. This
would be followed by a description on the characteristics of a joint venture, coupled with its
advantages and disadvantages, to present that a joint venture is the best option before the
company for expanding its business in Singapore, owing to the favourable conditions in the
nation, and the qualities of a joint venture. As joint venture is the advisable form of business
structure for entering the Singaporean market, the key terms which have to be included in the
joint venture have also been highlighted.

REPORT 3
Contents
Introduction......................................................................................................................................4
Section 1: Agency vs. Distributor vs. Joint Venture.......................................................................4
Agency and Distributor................................................................................................................5
Joint Venture................................................................................................................................7
Best Option..................................................................................................................................9
Section 2: Terms of Joint Venture Agreement................................................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

REPORT 4
Introduction
Running any business is not an easy task and requires the making of a number of decisions, the
majority of which are crucial and if not made after due consideration, can result in high losses for
the companies. This is particularly true before a company decides to expand its operations in
another nation. Our company, ABC Limited is considering expanding its business in Singapore,
in order to grow the business of the company. The reason for electing Singapore is that trade is
deemed as extremely significant for the economy of Singapore and the nation is on a constant
growth path (Channel NewsAsia, 2017). It is a highly developed and more importantly, a
successful free market economy, which attracts a number of businesses, making it a business
hub. The nation has a corruption free environment, has per capital GDP which is higher than
majority of developed nations and has stable prices (Forbes, 2016).
As ours is a technological company, the prospects of taking advantage of a technological
advanced nation, would deem to be beneficial for the nation. However, a crucial choice which
has to be made relates to choosing the kind of legal relations which the company could form with
an enterprise of Singapore. Apart from this, there is also a need to take care of some crucial
parts, when the agreements are drawn for the chosen type of legal relationship. This report
throws light on these very aspects of decision making for the company.
Section 1: Agency vs. Distributor vs. Joint Venture
There are broadly three options available with the company to create legal relationship, and these
three are agency, distributor, or joint venture. Each of these types has their own features, coupled