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. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. and industry experts about instructions to franchise your business. nontariff barrier d. gives the owner the exclusive right to reproduce art, music, literature, software, and other such works, as well as prepare derivative works, or distribute copies know how licensing Involves a contract in which the focal firm provides technological or management knowledge about how to design, manufacture, or deliver a product or a service. The country-of-origin effect refers to _____. International Business: Strategy, Management, and the New RealitiesStudy with Quizlet and memorize flashcards containing terms like contractual entry strategies in IBUS, intellectual property, intellectual property rights and more. Flashcards. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. Learn. In a very real sense, a licensor and licensee are entering into “a partnership for living well”, ie, the licence willVerified Answer for the question: [Solved] Which of the following is an example of licensing? A) Saks Inc. 82. Strategy and Organization in the International Firm 316 12. D)It is typically characterized as an unstable, short-term entry. 5Explain the advantages and disadvantages of franchising. Merger and Acquisition ii. Log in Join. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. Question 80. True Franchising is a variation of licensing strategy in which there is a contract between the parent company franchiser and a franchisee that allows the franchisee to operate a business developed by the franchiser in return for all rights for operations. Governed by : Contract law governs licensing. 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. View Overview. skhaira2118 Terms in this set (26) contractual entry strategies in IB cross-border exchanges in which the relationship between the focal firm & its foreign partner is. Licensing. d. and win! Microsoft Volume. equity mode of entry into foreign markets limited to a contractual agreement. C) The licensee cannot cancel the contract with the. 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. Get Quality Help. Mode Characteristics Advantages Disadvantages. Learn. 15. 8 Target Market Selection. Your matched tutor provides personalized help according to your question details. 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. Study with Quizlet and memorize flashcards containing terms like Test Your Comprehension, 15-8. BUS. 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. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. 6 Joint Ventures Chapter 8. On the other hand, franchising is a business model whereby a company (franchisor) allows another company (franchisee) to use its. B) They are more susceptible to volatility and risk compared to FDI. Franchise Agreements are the core operating principles that define the relationship between the franchisor and the franchisee. Multiple Choice . Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. Licensing. Direct exporting is often considered the default choice for new market entry. CONTRACTUAL STRATEGIC ALLIANCES i. The five most common methods include exporting, licensing and franchising, partnering and strategic alliance, acquisition, and Greenfield venture. economic output and, depending on your needs, goals and circumstances, may be the right choice for you. 3 Describe the advantages and disadvantages of licensing. Licensing/franchising also opens the doors. View final ch 15 man3600. licensing, don’t forget that they are separate concepts and each of them offers promising prospects. They generate a consistent, stable level of earnings from foreign operations. cross-border contractual relationships share several common characteristics. Franchising. contractual agreements. 14). Learn. The organization that obtains the access is the licensee. Management Contract 4. View Homework Help - Week 4 - Subway Case. Foreign. In franchise, a franchiser sells a property to the franchisee but controls over the procedures of the business. Ch. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. Licensing is designed to reduce the risks involved in doing business for everyone involved. C) There is no scope to operate an independent. 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 ________. Franchising 5. Revenues are usually more modest than with other entry strategies. 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) _____. Licensing is an arrangement by which the owner of intellectual property grants another. 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. When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. 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". Exporting is a method of expansion where. Licensing, Franchising and other Contractual Strategies P a g e 1 | 10 P a g e 2 | 10 Executive Summary The report discusses international modes • Compared to licensing, franchising is usually a much more stable, long-term entry strategy. With franchising, a foreign company essentially sets up a replica of the franchiser’s business, paying royalties and other fees to use its intellectual property, brand, and business model. An Industrial Design is Intended to _____ Question 2. BUS MISC. 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. Second, some firms find it less risky and more profitable to export. Test. A) franchise contract is more specific and usually longer in duration. When the parties make licensing or franchising agreement, the parties should critically. 3. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: 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. As a disclosure, my company is a franchise providing. 1 Explain contractual entry strategies. firm. licensee: In a licensing relationship, the buyer of the produce, service, brand or technology being licensed. Study with Quizlet and memorize flashcards containing terms like 5 Methods for entering the global market place from least risky/return to most risky/return, Exporting, Licensing and Franchising and more. e. Studying is made a lot easier and more fun with our online flashcards. 15 Licensing, Franchising and Other Contractual Strategies. Week 12 Licensing, Franchising, and Other Contractual Strategies 1. Learn. It. Key challenges faced by the franchisee is the decreased likelihood of operating an independent business. Although both franchising and MSCs are non-equity modes, there are important differences between. The definition is important because franchises are covered by securities law while licenses are covered by contract law. Footnote 3 We assume that the entering firm E and the domestic incumbent I have identical and constant marginal cost c if firm E uses the FDI strategy. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. : Licensing is a contractual agreement in which a licensor grants a licensee the right to use its intellectual property,. Match. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. d. -resource commitment. C) licensing contract covers more aspects of operations. Licensing, Franchising, and Other Contractual Strategies 438 Part 5 Functional Area Excellence 464 16. My Library. While franchising involves a more comprehensive relationship in which the franchisor provides ongoing support and guidance to the franchisee in addition to granting the right to use its business model and brand. 6. In addition to paying an. First, mature products in a domestic market might find new growth opportunities overseas. Terms in this set (12) Contractual entry strategies in international business. • 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. Aspect Franchising Licensing; Definition: Franchising is a business model where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand, systems, and support in exchange for fees and royalties. B) It ensures payment from the licensee to the licensor upon receipt of an export shipment. 2. make it easy for later entrants to win business. When it comes to retail entrepreneurship, there are several ways to open a. Franchisee: A franchisee is a small business owner that purchases the right to use an existing business's trademarks, associated brands, and other proprietary knowledge. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. 47 I Use contemporary technology to minimize counterfeiting. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. Advantages. 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. Terms in this set (21) Contractual entry strategies in international business. 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. It stated the market entry strategies of global hotel industry followed Cruz (1999)’s ‘Management Contract first, franchising latter’ strategy. Test. C) cross licensing. 3. Post termination issues. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other. they typically include the exchange of intangibles and services 3. Licensing. 1 Explain contractual entry strategies. Pages 6. Options for CONTRACTS include co-marketing, R&D contracts, turnkey project, strategic supplier/distributor, licensing/franchising. True/False . docx from BUS 417 at Zayed University. True or false: Transportation costs would have an effect on which entry mode a company uses. docx - Chapter 15: Licensing. From a licensee standpoint, there are fewer risks in product development,. Brand owners lease their patents, software, or characters to other companies. 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. 2. Question 4. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. The book connects to students of the technological age, facing a diverse and evolving economic environment fueled by. Typically include the exchange of intangibles and services. The license agreement permits the use of trademarks, nothing more. View Chapter 16. 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. The license has much stricter restrictions than the franchise. 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. and popular strategies for business expansion. 5 Contract Manufacturing 7. 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. Ensuring ongoing competitive advantage. The definition is important because franchises are covered by securities law while licenses are covered by contract law. Arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual property, Intellectual Property Rights and more. Uploaded By ebrarpatriot. Staffing leverage . It's also easier for the company to extricate itself from the situation if the results aren't favorable. b. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. Franchising. By entering your email, you agree to receive marketing emails from Shopify. Disney originally forecast shelling out a little more than $30 billion on content (including sports rights) in fiscal 2023, which ended Sept. doc from ADMN 05 at The Islamic University of Gaza. 15. Created by. Our clients are winning for franchising. b. Licensing, Franchising and other Contractual Strategies. 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. Total views 38. Licensing is an agreement between Licensor and licensee wherein one organization gives the other organization access to its patents, trade secrets, or technology for a fee known as a royalty. International Business: The New Realities, 5th Edition caters to a post-millennial student audience, the most diverse and educated generation to date. Flashcards. Multiple Choice . The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Ch. In other words, a licensing agreement grants the licensee the ability to use intellectual. )*Licensing, Franchising, and Other Contractual 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 compensationLearn this differences between licensing and franchising and why licensing is not a alternative to franchising. 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 and more. Franchising only deals with the provision of a service, while licensing can be for both services and products. Licensing concerns a product rights or the method of production marketing the product rights. Patent licensing is one of the most expensive licensing. B) They are more susceptible to volatility and risk compared to FDI. Verified Answer for the question: [Solved] Which of the following is an example of licensing? A) An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada. Under an international franchise agreement, a company (the franchiser) grants a foreign company (the franchisee) the right to use its brand name and to sell its products or services. includes exchange of intangibles and services 3. Flashcards. Protecting Intellectual Property. 15- Licensing, Franchising and other. 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. The organization that gives the access is the licensor. 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. Question 1. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. 2 Understand licensing as an entry strategy. Match. BUS 325 Ch. export. c. Find Flashcards. 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. Turnkey Project b. Franchising suggests the use of a whole package of signature products and business solutions, whereas licensing allows entrepreneurs to leverage certain individual property and produce and. Describes the appearance or features of a product. distributing or retailing products that are traditionally manufactured by the franchisor. 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. 3. a. licensing is the limitation placed on licensing agreements. destineeashlee. contract manufacturing. Royalties. ) Bringing ideas for business in other countries to new markets. 2. 70. patent. 25 “Market entry options”). S. The costs of licensing and franchising vary widely depending on many factors. If you think of a franchisor (the brand) as a. Contractual entry strategies in international business. 15. Patent licensing is a licensing that a licensor gives to the licensee to grant permission to conduct patent activities. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. by Cavusgil, Knight & Riesenberger. Strategies: Licensing, Investment, and Strategic. Exporting. The problems facing franchise companies in international transactions are relatively less formidable than those facing other service sectors. 4. agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a. 11). Verified Answer for the question: [Solved] Azoo Government Projects (Scenario) The nation of Azoo needs the assistance of a contractor to construct a new bridge and a subway system. Study with Quizlet. caitlyn_stryker. embargo, In the context of various strategies for reaching global markets, which of the following strategies. Risk in franchising. Chapter 14 Licensing, Franchising, and other Contractual Strategies Opening: Harry Potter; The Magic of Licensing386 • Warner Brothers has exclusive licensing rights to the Potter series • Warner allows companies to use Potter realted images on manufactured products in exchange for royalty • Licensing process is self generating o Each new. 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". 3Describe the advantages and disadvantages of licensing. Master Franchise. Two Types of Contractual Relationships. Franchising is governed under the Franchise Act 1998 (“the Act”) and is regulated by the Registrar of Franchises (“Registrar”) under the purview of Ministry of Domestic Trade and Consumer Affairs. Licensing refers to a business arrangement, where a company (licensor) sells its intellectual property to another company (licensee), or the right to produce its products, for a specified fee (royalty). contract manufacturing. Subway is a company that has spread worldwide through its expansion strategy. Management Service Contracts A management service contract is a long-term agreement, of up to ten years or even longer, whereby the legal owners of the property and real estate enter into a. License 101 Where lives Entering?. Setting up a new wholly owned subsidiary in the host country. cross-border exchanges in which relationship between focal firm and foreign partner is governed by explicit contract. Test. Test. Provide dynamic, flexible choice. Of course, when Switzerland let the value of its franc 30% against the euro, the cost of exports increased, and Swiss goods when bought with the franc, could be purchased at a large. c. Verified Answer for the question: [Solved] Which of the following challenges is applicable to the franchisee in a franchising agreement? A) The franchisee must make their own arrangements to acquire initial training and know-how. Devaluation decreases the value of currency in relation to other currencies. 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. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. But the Mouse’s actual 2023 number. From a licensor standpoint, there are fewer risks in the selling and service of what is being. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. B) An Indian automobile manufacturing company, buys engines from a Japanese manufacturer for its. 15. 4 ways to enter foreign markets. _Lic_Update (2). In some cases, it’s either for five years or can be for 20 years. 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 (Table 7. Under a franchise agreement, a company grants a foreign company the right to use its brand name and sell its products. 11 “Market Entry Options”). accepting a business model for doing a business in a traditional manner. Importing involves purchasing products from other countries and reselling them in one’s own. But, the organization has little control over technology and marketing. 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. Franchising. 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. a. The non-equity modes category includes export and contractual agreements. give later entrants a cost advantage over early entrants. Exporting means sending goods produced in one country to sell them in another country. When considering a venture in international markets, there are some significant tactical and strategic decisions to be effected. Franchising is a variation of licensing strategy in which there is a contract between the parent company franchiser and. Learn faster. is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. Exporting entails selling products to foreign customers. Two common types of contractual entry strategies are licensing and franchising. 2. Fresh features from the #1 AI-enhanced learning platform. A) duty B). The Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. Brooke MA, PhD, FIEx & Peter J. Can be pursued independently or in conjunction with other entry strategies. Product Invention. 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. In Licensing agreement and franchise, an overseas-based business will pay you a royalty or commission to use your. Franchising. Change Message. A) the licensee B) patent. ENTERING AND OPERATING IN INTERNATIONAL MARKETS; 13. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. Licensing, Franchising, and Other Contractual Arrangements Michael Z. Test. OTHER CONTRACTUAL ENTRY STRATEGIES -Under build-operate-transfer (BOT) arrangements, the firm contracts to build a major facility, such as a power plant, which it operates for a period of years and then transfers to the host-country government or other public entity. After few years, once the know- how is transferred, there is a risk that the foreign firm may begin to act on its own and the international firm may therefore. The equity modes category includes joint ventures and wholly. Terms in this set (22) contractual entry strategies in international business. Trademark LicensingCompanies which want to establish a retail presence in an overseas market with minimal risk, the licensing and franchising strategy allows another person or business assume the risk on behalf of the company. They provide dynamic flexible choice View LICENSING from BUSINESS A M0804455 at Ain Shams University. Contract usually runs five to seven years and is renewable at option of parties. Disadvantages of franchising to the franchisee. When considering the three basic decisions a firm must make when it decides to enter a foreign market, it must determine the market. Create flashcards for FREE and quiz yourself with an interactive flipper. Greenfield Strategy v. Create flashcards for FREE and quiz yourself with an interactive flipper. A) A joint venture B) Contract manufacturing C) Licensing D) Exporting E) A Global strategic alliance; Answer: B. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. 2 Franchising as an expansion strategy. Major global. Ask AI New. Florida State University. , Licensing. B. 3. Solved . On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. turnkey contracting. Franchising: Arrangement in which the firm allows u000banother the right to use an entire business system in u000bexchange for fees, royalties or. Licensing typically involves royalties or. C. Learn. One of the major differences when it comes to franchising vs. Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. final ch 15 man3600. In licensing/franchising, the organization sells the rights to intellectual property to an entity within a foreign market for a royalty fee. Franchising. Question 4. The legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties. Flashcards. Entering. These options vary in terms of how.