Licensing and franchising: the former means that an enterprise allows another foreign company to produce and sell one or more of its own products in an authorized country or around the world under the agreed return conditions, and there is a risk of revealing technical secrets; The latter means that the enterprise sells the trademark use right and operation technology to another foreign company, obtains one-time income, and continues to receive profit dividends in the future. This way reduces the cost of overseas expansion, but due to the inability to control the operation mode of franchisees, it may lead to the decline of product quality and affect the reputation. Advantages of licensed operation: the licensee does not have to bear the cost of setting up factories abroad; Risk: Technical secrets may be leaked. Advantages of franchising: the franchisee does not have to bear the cost of overseas expansion; Avoid many problems in establishing foreign operating institutions; Risk: Authorized enterprises may not be able to control the operation mode of franchisees, resulting in the decline of product or service quality.