Revenues are usually more modest than with other entry strategies. a. 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. Contract duration and renewal 2. Intellectual property rights (IPRs) legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties, monopoly advantage for specified period of time. 4. Leasing is especially beneficial to _____. Reasons for Licensing:Get Quality Help. - includes exchange of intangibles and services. If you think of a franchisor (the brand) as a. All of the above. Introduction. docx from BUS 417 at Zayed University. 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. 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. 15. Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. Many firms build biotech tags,. Skip until Main Content. Franchising allows franchisors to function effectively with a much leaner organization. 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. Two Types of Contractual Relationships. View final ch 15 man3600. Test. 5 Contract Manufacturing 7. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. management contracts. Licensing 4. 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. trademark. 6 Understand other contractual entry strategies. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. 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. • 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. 6. 15. Study with Quizlet and memorize flashcards containing terms like Inbound licenses, Outbound licensing, Contractual entry strategies in international business and more. 4 Franchising 7. One of the major differences when it comes to franchising vs. Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest. Key Challenges Faced by the Franchisee is the Decreased Likelihood. Franchising 5. 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. Technically, the contract binding. Learn. The book connects to students of the technological age, facing a diverse and evolving economic environment fueled by. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. View BUS 417 . Franchising. Royalties. They typically include the exchange of intangibles and services. d. 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. D. The franchisee is. 6 Understand other contractual entry strategies. 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. C) There is no scope to operate an independent. Multiple Choice . Licensing: Licensing offers several benefits for both the licensor and the licensee. Unique aspects of contractual relationships. Firms often combine franchising with other entry strategies. Bashar Hassan. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. Joint R&D iv. By entering your email, you agree to receive marketing emails from Shopify. D) franchise contract involves less control and. View chapter 15. Study with Quizlet and memorize flashcards containing terms like Test Your Comprehension, 15-8. The firm that grants such authorization to the other firm is known as the licensor, and the firm in the foreign. Ch. Terms in this set (21) Contractual entry strategies in international business. Licensing •A contractual agreement whereby one company (the licensor) makes an asset. Business model: The first difference is in the business model. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. Provide dynamic, flexible choice. E) adaptation for local. Contractual entry strategies in international business. ( True/False ) Question 1Start studying Ch 16: Licensing, Franchising, and other Contractual Strategies. Verified Answer for the question: [Solved] Which of the following is true about franchising as an entry strategy? A)It provides firms with minimum control over foreign operations. management contracts. Franchising only deals with the provision of a service, while licensing can be for both services and products. , licensing and franchising) have lower up-front costs than investment modes do. and industry leading guides that cover everything from francising principles to vorgeschritten franchise growth strategies. BUS MISC. Securities law govern. _Lic_Update (2). a. [afm 333 – chapter 16 li censing, franchising, and o ther contra ctu al stra tegie s] 1 Contr actual entry s tr ateg ies in int ernational business: cr oss-border e x changes wher e the re lationship between t he foc al firm and its f oreign partner is g overn ed by an explicit co ntr act 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 singular activity such as the shared use of a trademark. Match. One of the key differences between a franchise and a license is the limitation set out in licensing agreements. Detailed contracts and ongoing monitoring are equally as essential to the success of this international business strategy. Licensing, franchising and other contractual strategies. C) cross licensing. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. A) A joint venture B) Contract manufacturing C) Licensing D) Exporting E) A Global strategic alliance; Answer: B. In franchising, decision rights encompass the assignment of rights for use of system- and outlet-specific assets in contracts. Patents provide inventors the right to prevent another person or company from selling or using an invention for up. docx - Chapter 15: Licensing. 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. 2. 6. The non-equity modes category includes export and contractual agreements. 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. 1. and industry experts about instructions to franchise your business. in exchange for royalties, license fees, or some other form of compensation Patent Trade secret Brand name Product formulations. 25 “Market entry options”). export restraint b. An industrial design is intended to _____. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. ) Bringing ideas for business in other countries to new markets. Table 7. 13 8. 82. Compromises between short-term transactions and long-term solutions. Why would a company choose to use a contractual mode of entry rather than an investment mode? Contractual forms of entry (i. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other. Importing involves purchasing products from other countries and reselling them in one’s own. Learn. In this chapter, you will learn about: Contractual entry strategies Licensing as an entry strategy Advantages and disadvantages of licensing Franchising as an entry strategy. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. Week 12 Licensing, Franchising, and Other Contractual Strategies 1. View LICENSING from BUSINESS A M0804455 at Ain Shams University. licensing, Strategic alliancesA detailed list of issues pertaining to termination and renewal terms The advantages and disadvantages of franchising are similar to those of licensing. e. Chapter 15. 1. 2. View MIB_8_MSLewandowska_2018_Fra. 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. Learn faster with spaced repetition. ( Multiple Choice) Question 2. The main difference between the two is the duration of the commitment involved. . When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________. 15. 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. Often regarded as second best to export or direct investment. 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". wholly owned subsidiaries. Protecting Intellectual Property. turnkey contracting. Licensing: An arrangement in which the owner of intellectual property. Chapter 16 - Licensing, Franchising, and Other Contractual Strategies. CONTRACTUAL STRATEGIC ALLIANCES i. the advantages of franchising as an entry mode to global expansion are similar to the disadvantages of licensing false the least preferred strategy when a company's competitive advantage is based on technology is the wholly owned subsidiaryA franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket. Solved . Some of these market entry strategies include exporting, licensing, franchising, partnering, joint ventures, turnkey projects, and greenfield investments. Franchise: A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes, and trademarks in. Master Franchise. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. Licensing, Franchising, and Other Contractual Strategies. Question 14. 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. Franchising. However, they enjoy a lot more freedom than franchisees. Homework Help. -resource commitment. Joint venture iii. 5Explain the advantages and disadvantages of franchising. First, mature products in a domestic market might find new growth opportunities overseas. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. Multiple Choice . A franchise is a business model in which a business owner licenses their business to another individual or organization. Foreign. These options vary in terms of how. 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. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. pdf from BUST 08009 at University of Edinburgh. 1 Explain contractual entry strategies. Study with Quizlet. 3 Describe the advantages and disadvantages of licensing. . Licensing, Franchising and other contractual strategies. Docsity. Two common types of contractual entry strategies are licensing and franchising. B) franchising. 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. Strategic alliances can take many different forms, such as joint ventures, licensing agreements, and marketing alliances. Here are 10 market entry strategies you can use to sell your product internationally: 1. Quizlet flashcards, activities and games help you improve your grades. 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. 15. A) advanced economies B) economies with high PPP C) First World countriesthe statutory protections of franchise laws even if it wants to on advice of legal counsel. Firms can pursue them independently or in conjunction with other entry strategies. Licensing. Licensing of IPRs is at the heart of a franchise contract. 3. But, the organization has little control over technology and marketing. d. licensing. Test. Contractual Entry Strategies. Franchising. Exporting. make it difficult for later entrants to win business. The difference between a franchise contract and a licensing contract is that a. 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. Mode Characteristics Advantages Disadvantages. 1. focal firm does everything for business and hands it over to customer after training. 15 Licensing, Franchising and Other Contractual Strategies. Licensing concerns a product rights or the method of production marketing the product rights. 1 Licensing. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. Learn the distinguishing between licensing and franchising and why licensing is not certain alternative on franchising. A strategic alliance is a collaborative agreement between two or more companies to pursue mutually beneficial objectives. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 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. Key challenges faced by the franchisee is the decreased likelihood of operating an independent business. CONTRACTUAL ENTRY STRATEGIES Two common types of contractual entry strategies are licensing and franchising. Contractual Entry Modes 3. doc from MANAGEMENT BCPC202 at University of Professional Studies,Accra. Markman et al. docx from INT- 113 at Southern New Hampshire University. -risk. 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) _____. 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. Firms can pursue them independently or in conjunction with other entry strategies. Licensing,. Advantages. C) use of a well-known, recognizable brand name D) The franchisee holds much power,. 8 billion. Advantages. 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. Fast entry, low risk. cavusgil ib im 15 - CHAPTER 15 LICENSING FRANCHISING AND OTHER CONTRACTUAL STRATEGIES DETAILED CHAPTER OUTLINE INTRODUCTION The opening vignette is. 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. 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. IBUS CH 15 Licensing, Franchising, and Other Contractual Strategies. 2. Study with Quizlet and memorize flashcards containing terms like Build-operate-transfer (BOT), contractual entry strategies in international business, Intellectual Property and more. An Industrial Design is Intended to _____ Question 2. They generate a consistent, stable level of earnings from foreign operations. 3. A. Solved . : Licensing is a contractual agreement in which a licensor grants a licensee the right to use its intellectual property,. In Licensing agreement and franchise, an overseas-based business will pay you a royalty or commission to use your. Chapter 3 described the approach and methodsUnformatted text preview: 446 Chapter l6 Licensing, Franchising, and Other Contractual Strategies l Include noncompete clauses in employee contracts for all positions to prevent employees from serving competitors for up to three years after leaving the firm. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. RenaeBoleyn. Ch. Focal firm has moderate level of control over the foreign partner. Licensing, Franchising and other Contractual Strategies. Which of the following is key to licensing strategy success? Avoidance of barriers for foreign companies doing business. Chapter 15: Licensing, Franchising, and Other Contractual Strategies. BUS. They typically include the exchange of intangibles and services. Licensing, Franchising and. C) licensing contract covers more aspects of operations. foreign direct investment. licensing is the limitation placed on licensing agreements. Exporting 2. 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. thecashchicken. firms with industries, markets, and customs in other countries. 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. It is unusual to see a direct comparison between, say, licensing and joint ventures, or between franchising and subcontracting. True/False . Most Business document from University of British Columbia, 26 pages, BUS 434 Market Entry Licensing, Franchising, and Other Contractual Strategies 1-1 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 • Understand other contractual entry strategies. When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. Exporting falls within the broad umbrella of market entry strategies that include a range of approaches to build international markets for your business. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. The present model permits any strategy to be compared with any other strategy. Chapter 16 - Licensing, Franchising and other Contractual Strategies. Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. 4. Marketing in the Global Firm 464 17. Chapter 16: Licensing, Franchising and other Contractual Strategies. 2. they are governed by a contract that provides the focal firm with a moderate level of control over the foreign partner 2. Switzerland is a country that has revaluated its currency—this does not happen often. c. Franchising makes up 10% of the U. 13 8. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances An international entry mode involving a contractual agreement between two. , Licensing. 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. arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified. 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. University High School High School Regions. 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. License 101 Where lives Entering?. 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. 1 International-Expansion Entry Modes. 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. Match. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. 1 Explain contractual entry strategies. 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. contractual agreements. Terms in this set (19) Contractual entry strategies. The problems facing franchise companies in international transactions are relatively less formidable than those facing other service sectors. proficient interviews, and industry leading guides that cover everything from franchising basics to advanced franchise growth strategies. A. Flashcards. Strategy 3: Franchising. One of the major differences when it comes to franchising vs. Studying is made a lot easier and more fun with our online flashcards. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business: Other mark ups and contributions like finance charges, sale of related products etc. Match. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. A) the licensee B) patent. Franchising is another variation of licensing strategy. Licensing is an arrangement by which the owner of intellectual property grants another. Learn. Patent licensing is one of the most expensive licensing. 5. 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. Test. Licensing is expensive and it requires process like agreement & It is similar as Franchise Operation. , licensing and franchising) have lower up-front costs than investment modes do. Expert Help. 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. 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. Find Flashcards. Licensing typically involves royalties or. 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. 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, franchising and other contracting These activities are carried out by a wide variety of institutions such as MNEs, small and medium-sized enterprises and financial entities. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. -the amount of equity required affects the risk,return, and control that it will have in. contract manufacturing. 2. 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. B) They are more susceptible to volatility and risk compared to FDI. 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. , Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in. Learn. Two Types of Contractual Relationships. Franchising is an arrangement in which the. 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. licensing team. Match. Florida State University. Turnkey contracting. Financing is more costly in other countries. Multiple Choice . These rights are usually protected by a patent or some other intellectual right. Licensing involves an agreement in which one company (licensor) grants another company (licensee) the right to use its intellectual property (e. provides technical specifications to a subcontractor or local manufacturer. A licensing agreement allows a foreign company to sell a company’s. Study with Quizlet and memorize flashcards containing terms like Strategic alliances involve: a. 70. Study with Quizlet and memorize flashcards containing terms like Inbound licenses, Outbound licensing, Contractual entry strategies in international business and more. Methods for General Eintrittspreis into the Total Marketplace. 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. Question 74. 2. Any licensee can produce and sell products under your name or offer services using your brand. . 15. • 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. , Licensing Agreement, Copyright Licensing and more. B) franchise contract must include a foreign government. Question 1. Outline the challenges facing professional service firms when they internationalize. Exporting means sending goods produced in one country to sell them in another country. 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. 8. 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. The license agreement permits the use of trademarks, nothing more. The licensor provides no technical support or assistance in most cases. 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. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer.