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Corporate-level cooperative strategies are used to facilitate product and market diversification. As a cooperative strategy, franchising allows the firms to use its competencies to extend or diversify its product or market reach, but without completing a merger or an acquisition.

Strategic networks formed to implement international cooperative strategies result in firms competing in several countries. Differences among countries’ regulatory environments increase the challenge of managing international networks and verifying that at a minimum, the network’s operations comply with all legal requirements.

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