A management service contract is an agreement where a foreign company provides management services to a business owned by another party, allowing the foreign company to operate the business without direct investment or ownership. Management service contracts provide benefits to both parties by allowing business owners access to a supplier's expertise while managing risks through an agreement that defines each party's obligations. However, there are also disadvantages like the management company not having full control and their determinations not always being in the best interests of the business owner.

1. MANAGEMENT SERVICE
CONTRACTS
By: Valeria Cuéllar and Paula García

2. INITIAL CONDITIONS
 It’s method of entry (without direct investment or
ownership)
 It’s used in countries where goverment insists on
complete ownership of firms.
 Viable option for foreign expansion.

3. WHAT’S MANAGEMENT SERVICE
CONTRACT?

4. MAIN PURPOSE
 Business owners who just
don’t want to run the
business by themselves
 MSC  State all of the
details
 Agreements to protect
both.  obligation’s
understanding

5. UNDENIABLE BENEFITS
 The client or client government which gains access in:

6. SUPPLIER’S ADVANTAGES

7. DISADVANTAGES
 Not handle of all
aspects
 The owners isn’t silent
completely. Anyway,
they have to address
untreated issues.
 Management company’s
determinations are not
the best for owner
 A surge of operating
expenses.

8. REFERENCIES
 CZINCOTA, Michael, MOFFET,
Michael,RONKAINEN, Ilkka. “Fundamentals of
international business”. Editorial Thomson, 2004,
page 270.
 VanBare, Jennifer (2011, march 16) “What are
Management Service Contracts?, available in ehow
money(online)http://www.ehow.com/info_8067580
_management-service-contracts.html

9.  http://www.youtube.com/watch?v=8UrJ_JTFcpM