Multiple Choice . Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. When considering entering international markets, there are some significant strategic and tactical decisions to be made. Advantages. Learn. 6 Understand other contractual entry strategies. Change Message. A) franchise contract is more specific and usually longer in duration. A franchisor may not enforce a terminable-at-will contract clause in a jurisdiction that requires good cause to terminate a franchise agreement—even if the franchisee’s attorney actively negotiated the contract and the franchisee is given the sameLearn Licensing, Franchising and other contractual strategies with free interactive flashcards. Entering. Abstract. Franchising is common in manufacturing industries while licensing is primarily used in service industries. Therefore, a franchise includes a licence. Click the card to flip 👆. 2 Exporting 7. Create flashcards for FREE and quiz yourself with an interactive flipper. University High School High School Regions. Franchising. Flashcards; Learn; Test;Exporting. Franchising. 8. On the flip side, potential for revenue growth is more limited because the parent company will only earn a percentage of the earnings from each new store. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. Licensing ii. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. An organisation will need to determine their desired level of commitment, flexibility, control, presence and risk when going global, in order to choose the entry mode which best suits their situation. Franchising is a contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits. other contractual agreements and equity modes (wholly owned subsidiary or joint venture). final ch 15 man3600. D)It is typically characterized as an unstable, short-term entry. and industry experts about instructions to franchise your business. management contracts. On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. What is Licensing and Franchising? Licensing is a contractual agreement in which one company provides another company in foreign country access to its patents, trade secrets, or technology in exchange for a fee known as a royalty. Licensing gives a company greater control than franchising over the sale of its product in a target market. In other words, ownership rights in franchising are seen in the ratio of company-owned to franchisee-owned stores and residual income rights, as traditionally conceptualized in Fig. The definition is important because franchises are covered by securities law while licenses are covered by contract law. Learn faster with spaced repetition. Financing is more costly in other countries. By signing the franchise contract, a franchisee typically surrenders. Exporting. ability to preempt rivals and capture demand by establishing a strong brand name. Licensing & Franchising The major drawback of licensing is the problem of controlling the licensee due to the absence of direct commitment from the international firm granting the licence. When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. Provide dynamic, flexible choice. Licensing involves an agreement in which one company (licensor) grants another company (licensee) the right to use its intellectual property (e. Franchising, on the other hand, is a business expansion model where a franchisor grants the rights. Licensing concerns a product rights or the method of production marketing the product rights. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Learn. Turnkey contracting. Brand owners lease their patents, software, or characters to other companies. Learn the differences between licensing and franchising and why licensing is not an optional to franchising. firm can pursue individually or in conjunction with other entry strategies 4. In deciding which method to adopt, it is important that a firm evaluate each entry mode’s. True. d. pdf from ECON 102 at Warsaw School of Economics. The International Franchise Association defines franchising as a "continuing relationship in which the franchisor provides a licensed privilege to do business, plus assistance in organizing training, merchandising and management in return for a consideration from the franchisee ". Joint R&D iv. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract intellectual property ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs They are governed by a contract that provides the focal firm with moderate level of control over the foreign partner They typically include the exchange of intangibles and services Firms can pursue them independently or in conjunction with other entry strategies They provide dynamic, flexible choice They often reduce local perceptions of the. doc from MANAGEMENT BCPC202 at University of Professional Studies,Accra. wholly owned subsidiaries. b. . ( Multiple Choice) Question 2. a. 16 Licensing, Franchising, and Other Contractual Strategies. Verified Answer for the question: [Solved] Which of the following is characteristic of exclusive licensing agreements? A) The licensor is not allowed to interfere with the production or marketing of the licensed asset. It is unusual to see a direct comparison between, say, licensing and joint ventures, or between franchising and subcontracting. A) markets competing products for significantly lower prices B) uses the licensing asset to create products of poor quality C) refuses to pay the agreed upon royalties to the licensor D) does not guarantee future expansion in the. These options vary in terms of how much. Study Chapter 16 - Licensing, Franchising and other Contractual Strategies flashcards from Tia-Jane Maggs's class online, or in Brainscape's iPhone or Android app. Licensing specifies the territory as well as period. My. Equity-based arrangements. 15. turnkey contracting. As a disclosure, my company is a franchise providing. Question 2. - includes exchange of intangibles and services. IBUS CH 15 Licensing, Franchising, and Other Contractual Strategies. 3. , Licensing. c. D) strategic decision making. Detailed contracts and ongoing monitoring are equally as essential to the success of this international business strategy. Terms: a. if the franchisor has already achieved considerable success in franchising in its domestic market. Quizlet flashcards, activities and games help you improve your grades. make it difficult for later entrants to win business. accepting a franchise for dealing with the traditional products. a. Licensing is giving legal rights to in-market parties to use your company’s name and other intellectual property. There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7. In addition to the standard license process, a company will assist in establishing the business with the design, equipment, organization, and marketing. Establishing joint ventures with a host-country firm 6. An industrial design is intended to ________. Franchising: more complex form of licensing in which the franchisor allows a franchisee the right to use its entire business system in exchange for compensation. ENTERING AND OPERATING IN INTERNATIONAL MARKETS; 13. Franchising allows franchisors to function effectively with a much leaner organization. _____ these are the items owned by a franchisee that has the same monetary value. View Chapter 16 & 17 MAN 3600 from MAN 3600 at Florida State University. Stage Three: Specify a specific format that is either equity based or contractual (nonequity based). Table 7. Study with Quizlet and memorize flashcards containing terms like T/F Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. How Aristotle can help: the philosophy of business If your company is ever going to implement a successful licensing strategy, the corporate licensing team had better take to heart the wisdom of Aristotle. Since franchisees will assume many of the responsibilities otherwise shouldered by. 25 “Market entry options”). Disadvantages. Licensing. Multiple Choice . Franchising 5. at completion of the contract, the foreign client is handed the "key. A Definition of the Franchise Concept In its broadest sense, a “franchise” is a contractual relationship between a “franchisor” and an independent “franchisee” whereby the former licenses the latter to distribute aFranchising: Franchising is a common strategy used by businesses seeking to expand their operations in a risk-conscious manner. Because first mover advantage has been shown to result in better performance in emerging markets Marinov and Marinova 1999, Luo and Peng 1998, a firm may chose licensing as an expeditious entry strategy to gain the first mover advantage and create barriers for subsequent entrants. Licensing as an Entry Strategy a. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. Solved . Browse With TopicA licensing agreement is a contract between two parties (the licensor and licensee) in which the licensor grants the licensee the right to use the brand name, trademark, patented technology, or ability to produce and sell goods owned by the licensor. 6 Understand other contractual entry strategies. Less control, licensee may become a competitor, legal and regulatory environment (IP and contract law) must be sound: Partnering and Strategic Alliance: Shared costs reduce investment needed, reduced risk, seen as local entity: Higher cost than exporting, licensing, or franchising; integration problems between two corporate. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. equity mode of entry into foreign markets limited to a contractual agreement. What are Franchising? Franchising is an business agreement that includes the license is a trademark, of payment of a fee, and control over how the underlying franchises business has operated. Question 74. Firms often combine franchising with other entry strategies. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. " Early market entry is generally considered a competitive. C) use of a well-known, recognizable brand name D) The franchisee holds much power,. AFM 333 – Ch 16 Licensing, Franchising, and Other Contractual Strategies. contractor supplies managerial know how. BUS 325 Ch. A license allows the licensee to use, make and sell an idea, design, name, or logo for a fee. licensing is the limitation placed on licensing agreements. import/export, licensing c. • Understand licensing as an entry strategy. 6. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. 15 ~ Licensing, Franchising, and Other Contractual Strategies. Direct exporting is often considered the default choice for new market entry. Study with Quizlet and memorize flashcards containing terms like What does a contractual entry strategy in IB mean, Give forms of IP, What are the types of contractual relationships and more. Quiz 15: Licensing, Franchising, and Other Contractual Strategies Solved Professional Service Firms, Such as PriceWaterhouseCooper, Often Enter Large InternationalLike international licensing, international franchising has certain advantages and disadvantages. A) should bribe government officials to ensure protection of intellectual property B) should register patents and copyrights with local governments C) should keep information about intellectual property confidential from all franchisees in. It reduces risks for both parties. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Royalties. trademark. world markets • Starbucks has used direct ownership, licensing, and franchising for shops and products In 2008, Starbucks had 12,000 cafes in 35 countries and sales of $10. Introduction to International Business Study Guide Exam 3 – Part 1 Chapter 16: Licensing, Franchising and other Contractual Strategies • What does licensing refer to? An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. Partnering, licensing, franchising, joint venture creation, business acquisition, and Greenfield ventures represent the spectrum of market entry opportunities. ( True/False ) Question 1Start studying Ch 16: Licensing, Franchising, and other Contractual Strategies. Licensing. Franchising is a business model where the franchisor extends business know-how, intellectual rights and the right to operate in the name of a brand for consideration (usually in the form of fees and royalties) to the franchisee. BUS MISC. Dispute settlement 4. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. But the Mouse’s actual 2023 number. Similar to a licensing agreement, under a franchising Granting rights on an intangible property, like technology or a brand name, to a foreign company for a specified period of time and receiving a royalty in return. Match. Low control, low local knowledge, potential negative environmental impact of transportation. turnkey contracting. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. For example, a restaurant or a salon can be franchised, but not the products they use to provide the said services. chapter 16 licensing, franchising, and other contractual contractual entry strategies in international business: exchanges where the relationship between the. -the different modes can be further classified on the basis of equity or non-equity requirements. Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. import/export, joint ventures d. Chapter 16- Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Chapter 16- Licensing, Franchising, and Other Contractual Strategies 5. 3. 15. ) Finding financing for a new business in other countries. Direct exporters often sell directly to a consumer (B2C), a business (B2B), or a distributor in a foreign country. 5. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or. Study with Quizlet and memorize flashcards containing terms like Strategic alliances involve: a. when the franchisor has been successful domestically because of unique products and advantageous operating procedures and systems. C) A local firm allows the focal firm to blend into the local market, attracting less. to a foreign partner in exchange for a continuous the firm allows another the right to use an specific products, as well as the rights to distribute. Often regarded as second best to export or direct investment. Question 80. 2. 16: Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Ch. Match. ) The many technological barriers to doing business globally. Includes such knowledge-based assets of the firm or individuals as industrial designs, trade secrets, inventions, works of art, literature, and other "creations of the mind". Licensing, Franchising and other Contractual Strategies. Learn. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an. Test. A franchised. 3. 2. Buckley BA (Econ), MA, Phd Chapter 90 Accesses Abstract This. Chapter 15. AI Homework Help. Verified Answer for the question: [Solved] Which of the following is an advantage of franchising to the franchisee? A) reduced expenses as the franchisor provides supplies, equipment, and products B) Minimum initial investments or royalty payments are applicable. Match. Verified Answer for the question: [Solved] _____ is the world's leading licensing firm, with $56. Co-marketing. FDI in particular is now carried out not only by traditional MNEs but also by private investors, hedge funds, SOEs and even sovereign wealth funds. Licensing term can be defined as “The method of operating in other country wherein a Firm of one country agrees to permit a company in another country to use the manufacturing, Processing, Trademark & other skill provided by the Licensor”. Test. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Two common types of contractual entry strategies are licensing and franchising. Verified Answer for the question: [Solved] When compared to licensing agreements, the relationships established in franchising arrangements are typically volatile and short-term. B) An Indian automobile manufacturing company, buys engines from a Japanese manufacturer for its. Internal: Strategic. Licensing is a type of market entry whereby a company in one country transfers the right of a company in another country to use its unique production processes, patents, trademarks, technological achievements, and other valuable skills for a fee that is established under the contract. Flashcards. A) A joint venture B) Contract manufacturing C) Licensing D) Exporting E) A Global strategic alliance; Answer: B. cross-border exchanges in which the relationship between the focal firm & its foreign partner is governed by an. Get Quality Help. Study with Quizlet and memorize flashcards containing terms like In the context of international trade restrictions, offering less-favorable exchange rates to certain importers is a(n) _____. -most often begun with export. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. 15. If you want to have more autonomy in business decisions with the freedom to make your own vision come to life. 2. On the other hand,. 15. dynamic, flexible choices 5. 15. Turnkey Project b. Terms in this set (7)Study with Quizlet and memorize flashcards containing terms like when it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?, export assistance centers provide hands-on expiring assistance and trade-finance support for ____ and _____ -sized businesses. Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. strategies. B) It ensures payment from the licensee to the licensor upon receipt of an export shipment. Contractual entry strategies 2. In a build operate transfer agreement how does the business that built the facility ensure that they profit from the agreement?, Test Your Comprehension, 15-9. This strategy is based on franchising, the market entry mode, Subway used in order to enter foreign markets. It's also easier for the company to extricate itself from the situation if the results aren't favorable. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business: Other mark ups and contributions like finance charges, sale of related products etc. The impact of strategy considerations can most easily be illustrated in a Cournot duopoly setting as displayed in Fig. is licensed to establish, develop, and manage the entire franchising network in its market and has the right to sub-franchise to other franchisees, assuming. Franchising VS Licensing. • About 70 percent of the more than 2,000 Body Shop stores worldwide are operated by franchisees, while the rest are owned by Body Shop headquarters. 3. 1 International-Expansion Entry Modes. Geb 3375 Introduction to International Business – Study Guide Exam 3_ Part1 1 Introduction to International Business Study Guide Exam 3 – Part 1 Chapter 16: Licensing, Franchising and other Contractual Strategies With this chapter we continued the “entry strategies” part we had interrupted for exam 2. It stated the market entry strategies of global hotel industry followed Cruz (1999)’s ‘Management Contract first, franchising latter’ strategy. • Franchising vs licensing – Licensing of IPRs is an element of franchising – Licensing of IPRs is the means to reach the end • Goals of franchising – For the franchisor: geographically expand its busi ness without taking financial risks – For the franchisee: benefit from the brand, experi ence and know-how of the franchisor FranchisingSTRATEGY AND OPPORTUNITY ASSESSMENT FOR INTERNATIONAL BUSINESS; 11. Subway is a company that has spread worldwide through its expansion strategy. Greenfield Strategy v. Franchising. Advantages. View final ch 15 man3600. Licensing 2. A license is “a contractually transferred right to use a legally protected or unprotected in vention in exchange for a fee or another type of compensation” (Mordhorst 1994, p. , Contractual alliances include all of the following except: a. Match. Match. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. b. The licensee/franchisee gets immediate brand recognition and may quickly overtake the competition by offering a product or service for which there is existing unmet demand. Exporting falls within the broad umbrella of market entry strategies that include a range of approaches to build international markets for your business. IB Final review 80% A- / 90% A Chapter 16 Licensing, Franchising, and Other Contractual Strategies o Intellectual Property (IP): refers to ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works, and words, phrases, symbols, and designs Creation from the mind Licensing licenses. Production of certain components like automobile components to be used for producing. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. the firm enters a foreign market before other foreign firms - this is a proactive strategy. A license is much more limited than a franchise. B) They are more susceptible to volatility and risk compared to FDI. Franchisers must comply with the same local requirements as other businesses, and the franchise agreements must comply with local contract law, antitrust law, and trademark and licensing laws. Question 1. Study with Quizlet and memorize flashcards containing terms like Licensing, franchising and other contractual strategies are considered _____ control strategies, Contractual Relationships between a focal firm and a foreign partner are, Intellectual Property refers to. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract T/F, Exporting and foreign direct investing are two common types of contractual entry. View chapter 15. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. CONTRACTUAL ENTRY STRATEGIES Two common types of contractual entry strategies are licensing and franchising. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. •Franchising is an advanced form of licensing in which the focal firm, the franchisor,. Licensing is an arrangement in which a company (licensor) sells the right to use intellectual property or produce a company's product to the licensee, for royalty. licensing vs franchising. Contractual Entry Strategies of Licensing and Franchising: 1. Global Marketing Strategy for. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. they are governed by a contract that provides the focal firm with a moderate level of control over the foreign partner 2. Accounting for 12% to 13% of British trade, these methods of earning money abroad have become more popular in recent years. 8 Target Market Selection. Match. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it. 1Explain contractual entry strategies. Franchising is governed. Leasing is Especially Beneficial to _____ Question 80. A) Nickelodeon B) The Walt Disney Company C) Mattel D) Major League Baseball Services Discover Topics Ask a questionVerified Answer for the question: [Solved] To minimize the complexity of franchising, focal firms must ________. Study with Quizlet and memorize flashcards containing terms like contractual entry strategies in international business, intellectual property, intellectual property rights and more. Global Market Opportunity Assessment • Estimating Demand in Emerging Markets • Global Macro Trends that Affect International Business Licensing, Franchising, and Other Contractual Strategies: Contractual Entry Strategies Licensing as an entry strategy advantages and disadvantages of licensing Franchising as an entry strategy Other. Compromises between short-term transactions and long-term solutions. The most common methods firms join international trade are through contractual entry strategies such as direct exporting, franchising, licensing, management contract, contract manufacturing, buying a company, and joint ventures. The organization that obtains the access is the licensee. C. 1-1 BUS 434 Market Entry Licensing, Franchising, and Other Contractual Strategies 1-2 Contractual Relationships • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. 4. To sum up, there are various methods that a firm can utilize in its foreign market entry market strategy. They generate a consistent, stable level of earnings from foreign operations. a. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. master franchise. 1. franchising, wholly owned foreign subsidiaries b. Second, some firms find it less risky and more profitable to export. Franchising is governed by an elaborate agreement specifying the responsibilities and duties of both the parties involved. Exporting involves marketing the products you produce in the countries in which you intend to sell them. Flashcards. Learn faster with spaced repetition. The license agreement permits the use of trademarks, nothing more. Test. ,. Two Types of Contractual Entry Strategies • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation • Franchising: An arrangement in which the firm allows another the right to use an entire business system. docx - Chapter 15: Licensing. They typically include the exchange of intangibles and services. Expert Help. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. External: Operating Enviornment. actively manage a foreign. marijaazz. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. Lisanslama, Franchising ve diğer Sözleşme Stratejileri Learn with flashcards, games, and more — for free. C)It restricts a firm's ability to expand more rapidly abroad. arrangement in which an independent company is licensed to establish, develop, and manage the entire franchising network in its market and has the right to subfranchise to other franchisees, assuming the role of local franchisor. Low development cost and low risk in overseas expansion are advantages of this entry mode. Unique Aspects of Contractual Relationships. The difference between a franchise contract and a licensing contract is that a. Bashar Hassan. 3. an advanced form of licensing in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation. Similar to a licensing agreement, under a franchising agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a foreign company for a specified period of time and receives a royalty in return. Unique aspects of contractual relationships They are governed by a contract that provides the focal firm with moderate level of control over the foreign. Contract manufacturing iv. BUS. Contract Manufacturing: - This entry mode is a cross between licensing and investment entry. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. Fast entry, low risk. 15. Study with Quizlet and memorize flashcards containing terms like Build-operate-transfer (BOT), contractual entry strategies in international business, Intellectual Property and more. Flashcards. caitlyn_stryker. WEEK 12 - LICENSING, FRANCHISING AND OTHER CONTRACTUAL STRATEGIES. 3. . embargo, In the context of various strategies for reaching global markets, which of the following strategies. In franchise, a franchiser sells a property to the franchisee but controls over the procedures of the business. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. Licensing offers more controlBy expanding into new territories and regions via franchising, your company’s services are made available to a wider audience, both diversifying and localizing your reach. Study with Quizlet and memorize flashcards containing terms like Test Your Comprehension, 15-8. Licensing typically involves royalties or. Strategic alliances can take many different forms, such as joint ventures, licensing agreements, and marketing alliances. As a rule, licensing strategies inhibit control and produce only moderate returns. B. Strategy and Organization in the International Firm 316 12. Fast entry, low risk. It’s crucial to understand the key differences and similarities between these two popular growth strategies. The Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. export restraint b. A) duty B). Verified Answer for the question: [Solved] Which of the following is TRUE about cross-border contractual relationships? A) It is a more visible strategy than FDI and draws a lot of criticism from the local market. International Business: The New Realities, 5e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) A _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. contractor supplies managerial know how. Some firms view licensing as a supplementary strategy to other entry strategies, such as exporting or FDI. The present model permits any strategy to be compared with any other strategy. Which of the Following is Provided by the Licensor in a Licensing. a. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. Options for CONTRACTS include co-marketing, R&D contracts, turnkey project, strategic supplier/distributor, licensing/franchising. . Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. Learn. 2Understand licensing as an entry strategy. fFranchising as an Entry Strategy. 13 8. cavusgil ib im 15 - CHAPTER 15 LICENSING FRANCHISING AND OTHER CONTRACTUAL STRATEGIES DETAILED CHAPTER OUTLINE INTRODUCTION The opening vignette is. The difference between licensing and franchising is that franchise agreements involve an extensive business relationship between franchisor and franchisee whereas license agreements are limited and relate to a. Foreign Direct Investment and Collaborative Ventures 408 15. D) franchise contract involves less control and. is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. Ctrl+k Search questions by imageRetail franchising is the method of opening a single store under the umbrella of an established name, branding, trademark, and product line. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. and industry leading guides that cover everything from francising principles to vorgeschritten franchise growth strategies. 3. Franchising; Meaning: This is a contractual agreement in which one firm gets access to another firm’s patent, technology and other things in exchange for money. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies _____ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset. Our clients are winning for franchising. Licensing typically involves royalties or. There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7. Either way, the licensor gets a kickback—as a. Study with Quizlet and memorize flashcards containing terms like Inbound licenses, Outbound licensing, Contractual entry strategies in international business and more. The franchisee is. In this section, we will explore the traditional international-expansion entry modes. docx from BUS 417 at Zayed University. Several companies get patent their technology and other products that they don’t want anyone else to use without their consent. focal firm does everything for business and hands it over to customer after training.