A franchised. Learn. 8 Target Market Selection. University University of. Process. Disney originally forecast shelling out a little more than $30 billion on content (including sports rights) in fiscal 2023, which ended Sept. In turnkey contracting, one or several firms plan, finance, organize, and. An Industrial Design is Intended to _____ Question 2. Contract manufacturing iv. On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. drive early entrants out of the market. Chapter 16 Licensing, Franchising, and Other Contractual Strategies Learning Objectives: 1. It. Exporting is a low-risk strategy that businesses find attractive for several reasons. intellectual property. Contractual Entry Strategies. Franchising. Mode Characteristics Advantages Disadvantages. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. Introduction. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. contractor supplies managerial know how. -the different modes can be further classified on the basis of equity or non-equity requirements. A) bribe government officials to reduce nontariff trade barriers B) have a subjective view of moral and ethical standards C) conduct advance research on the host country's laws on intellectual property D) appoint managers from the. However, they enjoy a lot more freedom than franchisees. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. 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. Learn. Market entry modes for international businesses. Default and termination 3. strategic alliances. Contractual entry strategies in international business Click the card to flip 👆 cross-border exchanges in which relationship between the focal firm and its foreign partner is governed by an explicit contract Licensing, Franchising and other Contractual Strategies International Business Strategy, Management. Licensees "rent" the brand from the owner, but are then expected to use their own expertise, capabilities and resources to innovate, produce, market and sell the. Learn. In this section, we will explore the traditional international-expansion entry modes. Test. CONTRACTUAL STRATEGIC ALLIANCES i. 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. embargo, In the context of various strategies for reaching global markets, which of the following strategies. Strategy 3: Franchising. According to Franchise Business Review, franchising fees typically range from $25,000-$50,000 on average. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. make it difficult for later entrants to win business. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. First, mature products in a domestic market might find new growth opportunities overseas. Verified Answer for the question: [Solved] Which of the following is true about cross-border contractual relationship? A) It is a more visible strategy than FDI and draws a lot of criticism from the local market. Country Comparatives Guides. The licensor provides no technical support or assistance in most cases. International Business: The New Realities, 5th Edition caters to a post-millennial student audience, the most diverse and educated generation to date. All of the above. 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. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. Bashar Hassan. The present model permits any strategy to be compared with any other strategy. OTHER STRATEGIC ALLIANCES i. Establishing joint ventures with a host-country firm 6. 2. pdf from ECON 102 at Warsaw School of Economics. Studying is made a lot easier and more fun with our online flashcards. Conclusion. Can be pursued independently or in conjunction with other entry strategies. Licensing 4. Any licensee can produce and sell products under your name or offer services using your brand. licensing team. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. 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. Get Quality Help. What Are The Types of International Business. Patent. •Franchising is an advanced form of licensing in which the focal firm, the franchisor,. When considering entering international markets, there are some significant strategic and tactical decisions to be made. 2. 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. Outline the challenges facing professional service firms when they internationalize. Licensing typically involves royalties or. In existing literature, most strategies are appraised as alternatives to exporting, or as alternatives to green-field FDI. A license allows the licensee to use, make and sell an idea, design, name, or logo for a fee. b. Licensing, Franchising, and Other Contractual Arrangements Michael Z. doc from ADMN 05 at The Islamic University of Gaza. Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. Franchising is common in manufacturing industries while licensing is primarily used in service industries. 3. Docsity. . Quizlet flashcards, activities and games help you improve your grades. e. Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. 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. Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest. In other words, a licensing agreement grants the licensee the ability to use intellectual. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Royalties. dynamic, flexible choices 5. On the other hand,. D) franchise contract involves less control and. 2. - advanced form of licensing where firm allows another the right to an entire business system in exchange for fees, royalties, other forms of compensation. real business leading guides that top everything from franchises basics to advanced vote growth strategies. 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. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Either way, the licensor gets a kickback—as a. View final ch 15 man3600. Global Market Opportunity Assessment IV. Contract duration and renewal 2. 16: Licensing, Franchising, and Other Contractual Strategies unique aspects of. 3Describe the advantages and disadvantages of licensing. C) The licensee cannot cancel the contract with the. LICENSING AND FRANCHISING . Expert Help. Global Marketing Strategy for. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. c. Licensing, Franchising and Other Contractual Entry Strategies - Chapter 15. Therefore, a franchise includes a licence. 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. make it easy for later entrants to win business. Franchising is another variation of licensing strategy. ability to preempt rivals and capture demand by establishing a strong brand name. d. firms with industries, markets, and customs in other countries. Franchising. There are two major types of market entry modes: equity and non-equity. They are governed by a contract that provides the focal firm a moderate level of control over the foreign partner. 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. 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. licensee: In a licensing relationship, the buyer of the produce, service, brand or technology being licensed. Marketing in the Global Firm 464 17. Contractual entry strategies in int’l business – cross border exchanges where the. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. The definition is important because franchises are covered by securities law while licenses are covered by contract law. Either way, the licensor gets a kickback—as a. 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. It can be classified into three major forms-. 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. 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. 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). 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 sub franchise to other franchisees, assuming the role of local franchisor. Brand licensing is the act of giving permission to another company to use your business’s intellectual property (IP). Flashcards. Solved . Firms can pursue them independently or in conjunction with other entry strategies. 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. B) franchising. 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. Production of certain components like automobile components to be used for producing. Similarly, explicit contracts define franchising relationships. 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. On the other hand, franchising is a business model whereby a company (franchisor) allows another company (franchisee) to use its. c. Licensing and franchising share a few similar advantages. BUS 325 Ch. thecashchicken. C. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in IB, Licensing def, Licensing pro and more. Licensing, Franchising, and Other. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it. 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. These options vary in terms of how much. An industrial design is intended to ________. RenaeBoleyn. Ch 16: Licensing, Franchising, and other Contractual Strategies. An Introduction A. Fast entry, low risk. 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". View LICENSING from BUSINESS A M0804455 at Ain Shams University. 2. turnkey contracting. 1 International Entry Modes 7. Ask AI New. Learn. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. This part concerns the sale of knowledge rather than the sale of goods—licensing, franchising, management contracts and other similar arrangements. Franchising, on the other hand, is a business expansion model where a franchisor grants the rights. 15. Multiple Choice . e. Devaluation decreases the value of currency in relation to other currencies. Licensing,. Studying is made a lot easier and more fun with our online flashcards. What Are The Types of International Business. My Library. Franchising. Chapter 15. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. For courses in international business. doc from MANAGEMENT BCPC202 at University of Professional Studies,Accra. and popular strategies for business expansion. a. _____ these are the items owned by a franchisee that has the same monetary value. Learn faster with spaced repetition. 3. licensing. Create flashcards for FREE and quiz yourself with an interactive flipper. Chapter 16 - Licensing, Franchising and other Contractual Strategies. The costs of licensing and franchising vary widely depending on many factors. View BUS 417 . cross-border exchanges in which the relationship between the focal firm & its foreign partner is governed by an. • Understand licensing as an entry strategy. 1. 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. Turnkey contracting. d. U. 1. Match. Flashcards; Learn; Test;Exporting. Test. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. 11 “Market Entry Options”). Ensuring ongoing competitive advantage. -flexibility. Learn. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. firm. Question 80. Flashcards. firm can pursue individually or in conjunction with other entry strategies 4. Ch. 99/year Quiz 15: Licensing, Franchising, and Other Contractual Strategies. 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. 15. Learn. Although both franchising and MSCs are non-equity modes, there are important differences between. Contractual entry strategies in international business. Cooperative strategies refer to any type of agreement between two or more firms, contractual or otherwise, involving mutual forbearance towards one or more (typically not identical) goals by providing capital, knowledge, technology, managerial talent, and/or other valuable assets under the purview of said firms (Anand & Khanna, 2000; Gulati,. , T/F Organizations as diverse as Disney, Caterpillar,. C) They attract less attention and less of the criticism sometimes directed at firms. Its goal. Study with Quizlet. B) It ensures payment from the licensee to the licensor upon receipt of an export shipment. Test. Licensing and Franchising. Verified Answer for the question: [Solved] Which of the following is an example of intellectual property? A) systems of measurement B) McDonald's golden arches C) an unpublished book D) a phone directory. Flashcards. Contractual Entry Strategies. Partnering, licensing, franchising, joint venture creation, business acquisition, and Greenfield ventures represent the spectrum of market entry opportunities. The agreement so creates a franchise relationship is the franchise agreement and aforementioned parties to a franchise agreement are the franchisor and to french. b. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. C) licensing contract covers more aspects of operations. other contractual agreements and equity modes (wholly owned subsidiary or joint venture). Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. CHAPTER 15 LICENSING FRANCHISING AND. It reduces risks for both parties. A license is much more limited than a. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Learn. Your matched tutor provides personalized help according to your question details. docx from BUS 417 at Zayed University. 15. - includes exchange of intangibles and services. 6. export. Describes the appearance or features of a product. in exchange for royalties, license fees, or some other form of compensation Patent Trade secret Brand name Product formulations. Since franchisees will assume many of the responsibilities otherwise shouldered by. A) franchise contract is more specific and usually longer in duration. Test. 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. contract manufacturing. From a licensee standpoint, there are fewer risks in product development, market testing, manufacturing, and distribution. d. 3. On the other hand, international licensing is a foreign market entry mode that presents some. 2. Licensing: 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. cross-border exchanges in which relationship between the focal firm and its. Licensing as an Entry Strategy a. 3. 1. Discover. 4 Understand franchising as an entry strategy. With the export strategy the marginal cost of firm E is higher due to. E) adaptation for local. agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a. Internal: Operational. 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. 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”. Chapter 15: Licensing, Franchising, and Other Contractual Strategies. . Exhibit 15. AI Homework Help. Flashcards. the inherent disadvantages foreign firms experience in home countries. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket. S. Study Resources. Licensing. Match. import/export, licensing c. 15. When a business enters a foreign market after other foreign firms, the situation is defined as ______ entry. 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. Difference between licensing and. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. Ask AI New. strategies. - Governed by a CONTRACT that provides the focal firm a moderate level of control over the foreign partner - Typically involve exchange of INTANGIBLES (intellectual property) and services - Can be pursued independently or with other foreign market entry strategies, such as FDI and exporting Licensing and franchising both offer advantages for the involved parties: The licensee and franchisee both gain a competitive advantage in the market. Focal firm has moderate level of control over the foreign partner. 1Explain contractual entry strategies. A modern approach to international business. Match. Contracts. It stated the market entry strategies of global hotel industry followed Cruz (1999)’s ‘Management Contract first, franchising latter’ strategy. Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. c. Terms in this set (19) Contractual entry strategies. , licensing and franchising) have lower up-front costs than investment modes do. )*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. b. Greenfield Strategy v. trading bloc c. 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. Two Types of Contractual Relationships. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. B) The franchisor holds much power, including superior bargaining power. 15. Detailed contracts and ongoing monitoring are equally as essential to the success of this international business strategy. S. Create flashcards for FREE and quiz yourself with an interactive flipper. Exporting. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. 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; 6. 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. 1. a. 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. Type of Entry. 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. Leasing is Especially Beneficial to _____ Question 80. B) An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its. 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. Why would a company choose to use a contractual mode of entry rather than an investment mode? Contractual forms of entry (i. master franchise. e. Brand owners lease their patents, software, or characters to other companies. Joint R&D iv. 2. 15. S. The entry strategy in global business with the lowest risk is _____, while _____ is considered to have higher risk than the choices available. Licensing, Franchising and other Contractual Strategies. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. 1 Explain contractual entry strategies. Internal: Strategic. 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. Some of these market entry strategies include exporting, licensing, franchising, partnering, joint ventures, turnkey projects, and greenfield investments. Licensing ii. Exporting and Countertrade; 14. Switzerland is a country that has revaluated its currency—this does not happen often. In licensing/franchising, the organization sells the rights to intellectual property to an entity within a foreign market for a royalty fee. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. Multiple Choice . 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. View Any. This strategy is based on franchising, the market entry mode, Subway used in order to enter foreign markets. B. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. 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 ". 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. and industry leading guides that cover everything from francising principles to vorgeschritten franchise growth strategies. A licensing is an agreement whereby a licensor grants the rights to intangible property (patents, inventions, formulas, processes, designs, copyrights, and trademarks) to another entity (licensee) for a specified period and in return, the licensor receives a royalty/fee from the licensee. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. Arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or. Unique Aspects of Contractual Relationships. One of the major differences when it comes to franchising vs. Ch.