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) _____. Advantages and disadvantages of franchising. Match. 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. 2 Understand licensing as an entry strategy. 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. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it. Franchising allows franchisors to function effectively with a much leaner organization. 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. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. It's also easier for the company to extricate itself from the situation if the results aren't favorable. Ch 16: Licensing, Franchising, and other Contractual Strategies. 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. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. Start studying Ch. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. 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. 2. : Licensing is a contractual agreement in which a licensor grants a licensee the right to use its intellectual property,. Learn. doc from MANAGEMENT BCPC202 at University of Professional Studies,Accra. Compromises between short-term transactions and long-term solutions. 15. Human Resource Management. -the amount of equity required affects the risk,return, and control that it will have in. Advantages. Brand licensing is the act of giving permission to another company to use your business’s intellectual property (IP). A) Duty B) Residual C) Royalty D) Tariff Answer: CLicensing 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. Licensing 2. 25 “Market entry options”). Question 4. 15. 13 8. Flashcards. 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. b. By entering your email, you agree to receive marketing emails from Shopify. Production of certain components like automobile components to be used for producing. U. Staffing leverage . 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. 99/yearQuiz 15: Licensing, Franchising, and Other Contractual Strategies. 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. 15. Franchise Agreements are the core operating principles that define the relationship between the franchisor and the franchisee. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business: Other mark ups and contributions like finance charges, sale of related products etc. Test. Match. foreign direct investment. 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. agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a. 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. 6 Understand other contractual entry strategies. Revenues are usually more modest than with other entry strategies. Choose from 29 different sets of Licensing, Franchising and other contractual strategies flashcards on Quizlet. Contracts. Low development cost and low risk in overseas expansion are advantages of this entry mode. 15 Licensing, Franchising, and Other Contractual. 1. Licensing, Franchising and other Contractual Strategies Cross-border contractual relationships: give permission to use intellectualWhen the executives in charge of a firm decide to enter a new country, they must decide how best to do it. In exchange, you get royalties or other payments. • Describe. caitlyn_stryker. 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. Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. Licensing is designed to reduce the risks involved in doing business for everyone involved. Learn. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. 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. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. Two common types of contractual entry strategies are licensing and franchising. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. Post termination issues. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. fAdvantages & Disadvantages of. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. Contractual Entry Strategies of Licensing and Franchising: 1. Licensing is a contractual agreement whereby, in exchange for a royalty or fee, a company gives the right to another company to use a trademark, know-how, or other proprietary technology. Licensing, on the other hand, is a form of private contract between parties and. cross-border exchanges in which relationship between focal firm and foreign partner is governed by explicit contract. IBUS CH 15 Licensing, Franchising, and Other Contractual Strategies. Reasons for Licensing:Get Quality Help. Docsity. The licensor provides no technical support or assistance in most cases. Exporting is a low-risk strategy that businesses find attractive for several reasons. distributing or retailing products that are traditionally manufactured by the franchisor. 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. The main difference between the two is the duration of the commitment involved. 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. 15. Fast entry, low risk. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. Our clients are winning for franchising. chapter 16 licensing, franchising, and other contractual contractual entry strategies in international business: exchanges where the relationship between the. Can be pursued independently or in conjunction with other entry strategies. An MNC may move into that mode voluntarily (to test the waters, so to speak) or for purely defensive reasons (to prevent a competitor from entering the market or to preserve sales that otherwise would be lost because of a. License 101 Where lives Entering?. 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. Can be pursued independently or in conjunction with other entry strategies. 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. Learn faster with spaced repetition. 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. Equity relations allow firms to have some direct control, while contractual does not. - contract provides focal firm with moderate level of control over foreign partner. Direct exporting is often considered the default choice for new market entry. Strategy 3: Franchising. 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. In this section, we will explore the traditional international-expansion entry modes. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual property, Intellectual Property Rights and more. 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. When a firm allows others toIn Malaysia, franchising and licensing are governed under different laws. Chapter 16- Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Chapter 16- Licensing, Franchising, and Other Contractual Strategies 5. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. Click the card to flip 👆. 4 Franchising 7. Royalties. 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. A license allows the licensee to use, make and sell an idea, design, name, or logo for a fee. -flexibility. Low control, low local knowledge, potential negative environmental impact of transportation. Representatives of the Azoo government are reviewing the project bids. Type of Entry. *Granting a right to use property to others. But, the organization has little control over technology and marketing. 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. 7 Using Demographics to Guide Global Marketing Strategy 6. trademark. licensee: In a licensing relationship, the buyer of the produce, service, brand or technology being licensed. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. Abstract. Verified Answer for the question: [Solved] _____ 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. Governed by : Contract law governs licensing. Either way, the licensor gets a kickback—as a. Contract manufacturing iv. Learn. Methods for General Eintrittspreis into the Total Marketplace. Licensing Agreement: A licensing agreement refers to a written agreement entered into by the contractual owner of a property or activity giving permission to another to use that property or engage. licensing vs franchising. Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. Each entry mode has different pros and cons, addressing issues like cost, control, speed to market, legal barriers, and cultural barriers with different degrees of efficiency. Terms: a. and industry experts about instructions to franchise your business. Licensing agreement specifies nature of relationship between licensor and licensee. Co-marketing. 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. Homework Help. . Match. In addition to the standard license process, a company will assist in establishing the business with the design, equipment, organization, and marketing. True. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. Study with Quizlet. intellectual property. d. 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. Internal: Operational. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. Solved . Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. The equity modes category includes joint ventures and wholly. Low control, low local knowledge, potential negative environmental impact of transportation. Foreign Direct Investment and Collaborative Ventures; 15. Ideas or works created by firms or individuals, such asintellectual property grants another firm the right to usethat property for a specified period of time in exchangeView Homework Help - Week 12. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Licensing of IPRs is at the heart of a franchise contract. 4. The agreement so creates a franchise relationship is the franchise agreement and aforementioned parties to a franchise agreement are the franchisor and to french. Outline the challenges facing professional service firms when they internationalize. OTHER STRATEGIC ALLIANCES i. B) It ensures payment from the licensee to the licensor upon receipt of an export shipment. 2 Understand licensing as an entry strategy. 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. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. pdf from BUST 08009 at University of Edinburgh. Licensing, Franchising and other Contractual Strategies. Florida State University. It is quite similar to the "franchise" operation. From a licensee standpoint, there are fewer risks in product development, market testing, manufacturing, and distribution. On the other hand, franchising is a business model whereby a company (franchisor) allows another company (franchisee) to use its. Fresh features from the #1 AI-enhanced learning platform. The most use contractual entry modes are Licensing, Franchising and Turnkey projects which is going to be explained below. Similarly, explicit contracts define franchising relationships. Subscribe to newsletters Subscribe: $29. Franchising. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. Learn vocabulary, terms, and more with flashcards, games, and other study tools. . Business model: The first difference is in the business model. Licensing typically involves royalties or. 5 Explain the advantages and disadvantages of 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. AFM 333 – Ch 16 Licensing, Franchising, and Other Contractual Strategies. intellectual property Ideas or works that individuals or firms create, including discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. 1 International-Expansion Entry Modes. Question 4. Uploaded By ebrarpatriot. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Learn. 4 Understand franchising as an entry strategy. _____ these are the items owned by a franchisee that has the same monetary value. contract manufacturing. docx from BUS 417 at Zayed University. Licensing. Disadvantages of franchising to the franchisee. accepting a business model for doing a business in a traditional manner. Discover. Ensuring ongoing competitive advantage. RenaeBoleyn. Match. D) franchise contract involves less control and. Test. Licensing, Franchising and other Contractual Strategies Cross-border contractual relationships: give permission to use intellectual When the executives in charge of a firm decide to enter a new country, they must decide how best to do it. Second, some firms find it less risky and more profitable to export. if the franchisor has already achieved considerable success in franchising in its domestic market. " Early market entry is generally considered a competitive. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other. Licensing •A contractual agreement whereby one company (the licensor) makes an asset. A licensing agreement allows a foreign company to sell a company’s. 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. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. 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. 14). Flashcards. They often. Verified Answer for the question: [Solved] _____ is the world's leading licensing firm, with $56. Under a franchise agreement, a company grants a foreign company the right to use its brand name and sell its products. Match. Flashcards; Learn; Test;Exporting. 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. To sum up, there are various methods that a firm can utilize in its foreign market entry market strategy. 8. 3. 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. Licensees also enjoy lowered risk because they're usually entering the marketplace with a known quantity and a built-in customer base. contractor supplies managerial know how. Contractual Entry Strategies. Mode Characteristics Advantages Disadvantages. Learn this differs between licensing and franchising and why general is not an alternative for franchising. When considering entering international markets, there are some significant strategic and tactical decisions to be made. Partnering, licensing, franchising, joint venture creation, business acquisition, and Greenfield ventures represent the spectrum of market entry opportunities. 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. Which mode is to be used in which situation 5. -most often begun with export. Table 7. 1 Explain contractual entry strategies. Strategic Management Chapter 7. It is a form of distribution and marketing in which the company gives the other firm the right to do business in their protected way (Bradley 2005:246). Franchising is governed. Many firms build biotech tags,. franchising, wholly owned foreign subsidiaries b. Direct strategies include joint ventures and wholly-owned subsidiaries/ greenfield investments (see Table 2). other contractual agreements and equity modes (wholly owned subsidiary or joint venture). Franchising: Arrangement in which the firm allows u000banother the right to use an entire business system in u000bexchange for fees, royalties or. 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. Both licensing and franchising are really fantastic. Since franchisees will assume many of the responsibilities otherwise shouldered by. Difference between licensing and. Chapter 16 - Licensing, Franchising, and Other Contractual Strategies. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. The impact of strategy considerations can most easily be illustrated in a Cournot duopoly setting as displayed in Fig. Contractual Entry Strategies. ) Bringing ideas for business in other countries to new markets. An industrial design is intended to _____. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. CHAPTER 15 LICENSING FRANCHISING AND. final ch 15 man3600. Flashcards. It's also easier for the company to extricate itself from the situation if the results aren't favorable. a. View Chapter 16. It is unusual to see a direct comparison between, say, licensing and joint ventures, or between franchising and subcontracting. Patent. 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. Test. provides technical specifications to a subcontractor or local manufacturer. A license is much more limited than a franchise. c. b. Risk in franchising. 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. , Licensing Agreement, Copyright Licensing and more. Licensing, Franchising, and Other Contractual Strategies 438 Part 5 Functional Area Excellence 464 16. Franchising makes up 10% of the U. 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. 3. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. One of the key differences between a franchise and a license is the limitation set out in licensing agreements. 15. It’s a legally binding document that spells out—in great detail— the integrated touch points of running the business from the franchisor and franchisee point of view. 70. 1. Created by. 16: Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Ch. A) duty B). A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. Licensing, Franchising, and Other Contractual Strategies. Leasing is especially beneficial to _____. Dispute settlement 4. d. marijaazz. The costs of licensing and franchising vary widely depending on many factors. the franchising and licensing as market entry mode in general and in hotel industry. 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. dynamic, flexible choices 5. Licensing: Licensing is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor". The contractual arrangements ( CA ) mode of entry is in most cases a stepping stone to international production. real business leading guides that top everything from franchises basics to advanced vote growth strategies. Two Types of Contractual Relationships. University University of. Exporting and Countertrade; 14. They provide dynamic flexible choice View LICENSING from BUSINESS A M0804455 at Ain Shams University. Expert Help. at completion of the contract, the foreign client is handed the "key. 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". Flashcards. Flashcards. These rights are usually protected by a patent or some other intellectual right. Firms can pursue them independently or in conjunction with other entry strategies. chapter 16 licensing, franchising, and other contractual contractual entry strategies in international business: exchanges where the relationship between the. c. The entry strategy in global business with the lowest risk is _____, while _____ is considered to have higher risk than the choices available. The organization that gives the access is the licensor. 15. Leasing is Especially Beneficial to _____ Question 80. A strategic alliance is a collaborative agreement between two or more companies to pursue mutually beneficial objectives. Your matched tutor provides personalized help according to your question details. B)It is an ownership-based international business activity. Chapter 15. 15- Licensing, Franchising and other. they typically include the exchange of intangibles and services 3. Flashcards. Market entry modes for international businesses. economic output and, depending on your needs, goals and circumstances, may be the right choice for you. Type of Entry. 99/year Quiz 15: Licensing, Franchising, and Other Contractual Strategies. Which of the following is key to licensing strategy success? Avoidance of barriers for foreign companies doing business. Global Market Opportunity Assessment 348. 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. Marketing in the Global Firm 464 17. B) An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its. Here are 10 market entry strategies you can use to sell your product internationally: 1. patent. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. Match. 3 Licensing 7. equity mode of entry into foreign markets limited to a contractual agreement. Disadvantages. licensing is the limitation placed on licensing agreements. 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. Test. C) licensing contract covers more aspects of operations. 15. The firm that grants such authorization to the other firm is known as the licensor, and the firm in the foreign. C) They attract less attention and less of the criticism sometimes directed at firms. Provide dynamic, flexible choice. Match. Question 74. 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. Exporting, joint ventures, direct investment, franchising, licensing, and various other forms of strategic alliance. 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. -the different modes can be further classified on the basis of equity or non-equity requirements. The legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties. View Homework Help - Week 4 - Subway Case.