From a licensee standpoint, there are fewer risks in product development,. Our clients are winning for franchising. 6. strategic alliances. Learn. Dispute settlement 4. 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 subsidiaryChapter 6: Strategic Alliances. Franchising only deals with the provision of a service, while licensing can be for both services and products. pdf from ECON 102 at Warsaw School of Economics. Licensing is an arrangement by which the owner of intellectual property grants another. Study with Quizlet and memorize flashcards containing terms like Test Your Comprehension, 15-8. Securities law govern. Match. These options vary in terms of how much. destineeashlee. Chapter 16- Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Chapter 16- Licensing, Franchising, and Other Contractual Strategies 5. 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. Study Chapter 16 - Licensing, Franchising and other Contractual Strategies flashcards from Tia-Jane Maggs's class online, or in Brainscape's iPhone or Android app. Licensing typically involves royalties or. Learn. 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. • 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 typically involves royalties or. 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 ________. in exchange for royalties, license fees, or some other form of compensation Patent Trade secret Brand name Product formulations. 2. Firms can pursue them independently or in conjunction with other entry strategies. Licensing 2. Contractual entry strategies 2. contract manufacturing. 6. Direct exporting. The license has much stricter restrictions than the franchise. 1. 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. C) There is no scope to operate an independent. Master Franchise. the positive or negative perception of firms and products from a certain country. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. pdf from BUST 08009 at University of Edinburgh. BUS 325 Ch. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising, 2) For Walt Disney. The licensor provides no technical support or assistance in most cases. Foreign Direct Investment and Collaborative Ventures 408 15. 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. 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. Two Types of Contractual Relationships. licensing. Licensing specifies the territory as well as period. Disadvantages of franchising to the franchisee. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. Licensing •A contractual agreement whereby one company (the licensor) makes an asset. Discover. Indirect strategies are indirect/direct exporting, licensing, franchising and contractual agreements (see Table 2). Cavusgil, 3edition, Licensing Franchising and Other Contractual Strategies, Licensing, Franchising, Franchise, Chapter16. Licensing, Franchising and. Licensing, Franchising, and Other. Exporting, joint ventures, direct investment, franchising, licensing, and various other forms of strategic alliance can be considered as market entry modes. ( Multiple Choice) Question 2. trademark. 30. Homework Help. Doc Preview. Franchising, on the other hand, is a business expansion model where a franchisor grants the rights. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. Internal: Operational. 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. 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". accepting a franchise for dealing with the traditional products. Multiple Choice . Quiz 15: Licensing, Franchising, and Other Contractual Strategies. Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. LICENSING AND FRANCHISING . Contract duration and renewal 2. Here are 10 market entry strategies you can use to sell your product internationally: 1. Franchising VS Licensing. A strategic alliance is a collaborative agreement between two or more companies to pursue mutually beneficial objectives. One of the key differences between a franchise and a license is the limitation set out in licensing agreements. Turnkey projects 3. Study with Quizlet. Mode Characteristics Advantages Disadvantages. True/False . 15. It is unusual to see a direct comparison between, say, licensing and joint ventures, or between franchising and subcontracting. Exporting and Foreign Direct Investing are Two Common Types of Contractual. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. Joint venture iii. Exporting and foreign direct investing are two common types of contractual entry strategies. Licensing is expensive and it requires process like agreement & It is similar as Franchise Operation. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. 2. ,. a. , Licensing Agreement, Copyright Licensing and more. contractor supplies managerial know how. 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. Two Types of Contractual Entry Strategies • Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation • Franchising: An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other. 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. Flashcards. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. Can be pursued independently or in conjunction with other entry strategies. 7. Advantages and disadvantages of franchising. b. Question 1. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. fAdvantages & Disadvantages of. Licensing. Question 14. a. 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). In franchise, a franchiser sells a property to the franchisee but controls over the procedures of the business. 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. 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. Franchising VS Licensing. One of the major differences when it comes to franchising vs. Licensing and Franchising. External: Operating Enviornment. Two Types of Contractual Relationships. 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. Typically, this licence will cover know-how and other confidential information, trademarks. at completion of the contract, the foreign client is handed the "key. Franchising and licensing both offer business opportunities with some of the work already done for you, but that doesn't mean they're exactly the same. Multiple Choice . c. and popular strategies for business expansion. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Match. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. Created by. It is where a person (franchisor) who has developed a certain way of doing a business gives another. 15. Firstly, licensors can generate additional revenue streams by granting licenses to third parties, enabling them to enter new markets or expand their product offerings without significant investment. The license has much stricter restrictions than the franchise. Licensing involves an agreement in which one company (licensor) grants another company (licensee) the right to use its intellectual property (e. Exporting. docx from INT- 113 at Southern New Hampshire University. Test. Internal: Operational. 3 Describe the advantages and disadvantages of licensing. 4 illustrates the nature of the franchising agreement A typical. Foreign Direct Investment and Collaborative Ventures; 15. Other Contractual Entry Strategies Chapter 15 Contractual Entry Strategies There are two common types of contractual entry strategies; 1. Test. Joint R&D iv. Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the license) in exchange for royalties, license fees, or some other form of compensation. B. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. Fast entry, low risk. , licensing and franchising) have lower up-front costs than investment modes do. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. Direct exporters often sell directly to a consumer (B2C), a business (B2B), or a distributor in a foreign country. The globalization of franchising took off in the 1990s as a result of push factors (domestic. , licensing and franchising) have lower up-front costs than investment modes do. Create flashcards for FREE and quiz yourself with an interactive flipper. e. late. Foreign. The entry strategy in global business with the lowest risk is _____, while _____ is considered to have higher risk than the choices available. 1. Licensing, franchising and other contractual strategies. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. They typically include the exchange of intangibles and services. Patent. The licensee/franchisee gets immediate brand recognition and may quickly overtake the competition by offering a product or service for which there is existing unmet demand. Study Chapter 16 flashcards. Royalties. Correct Answer: Access For Free . Organising for the Strategy. 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. Brooke MA, PhD, FIEx & Peter J. Reasons for Licensing:Get Quality Help. Setting up a new wholly owned subsidiary in the host country. Learn. A) franchise contract is more specific and usually longer in duration. Licensing, Franchising and other Contractual Strategies. 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. An industrial design is intended to ________. Post termination issues. True/False . International Business: The New Realities, 5th Edition caters to a post-millennial student audience, the most diverse and educated generation to date. 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. Learn faster. S. com Licensing • A company (licensor) grants rights to intangible property to another company (licensee). Solved . CONTRACTUAL ENTRY STRATEGIES Two common types of contractual entry strategies are licensing and franchising. 3. Created by. Test. , Exporting and foreign direct investing are two common types of contractual entry strategies. 3. Strategic alliances can take many different forms, such as joint ventures, licensing agreements, and marketing alliances. 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. Contract manufacturing is also called outsourcing. 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. The strategy is to deter other firms’ entry into the market. Contractual Entry Strategies. View LICENSING from BUSINESS A M0804455 at Ain Shams University. Franchising. Equity-based arrangements. Franchising is common in manufacturing industries while licensing is primarily used in service industries. Disadvantages of licensing. b. 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. 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. Flashcards; Learn; Test;Exporting. Licensing concerns a product rights or the method of production marketing the product rights. make it easy for later entrants to win business. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. Type of Entry. 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. Either way, the licensor gets a kickback—as a. Ch. embargo, In the context of various strategies for reaching global markets, which of the following strategies. 5 Contract Manufacturing 7. docx from BUS MISC at Florida State University. Learn. ability to preempt rivals and capture demand by establishing a strong brand name. cross-border contractual relationships share several common characteristics. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. Florida State University. Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. Zhao et al. The country-of-origin effect refers to _____. Contractual Entry Strategies Contractual entry strategies Two common types of contractual entry strategies are licensing andLicensing. -flexibility. 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. 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. 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. They provide dynamic, flexible choice. Solved . docx - Chapter 15: Licensing. 1 International Entry Modes 7. When considering a venture in international markets, there are some significant tactical and strategic decisions to be effected. 3 Describe the advantages and disadvantages of licensing. Direct exporting is often considered the default choice for new market entry. Business format franchising accounts for most of the explosive growth in franchising that has occurred in the past five decades. Test. industry are franchising and management-service contracts (MSC). C) They attract less attention and less of the criticism sometimes directed at firms. b. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. - Firms that use licensing often can avoid expensive entry as is usually required in FDI. 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. 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. By signing the franchise contract, a franchisee typically surrenders. Two common types of contractual entry strategies are licensing and franchising. Try it free3. Licensing, Franchising, and Other Contractual Strategies. Unique Aspects of Contractual Relationships. Buckley BA (Econ), MA, Phd Chapter 90 Accesses Abstract This. Match. Business model: The first difference is in the business model. B) It ensures payment from the licensee to the licensor upon receipt of an export shipment. and win! Microsoft Volume. It is quite similar to the "franchise" operation. 3. Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. 4 Understand franchising as an entry strategy. Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of. 0 (1. when the factors that contributed to domestic success are transferable to foreign locations. Contractual entry strategies in international business. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket. A) A joint venture B) Contract manufacturing C) Licensing D) Exporting E) A Global strategic alliance; Answer: B. 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. 2. One of the key differences between a franchise and a license is the limitation set out in licensing agreements. IBUS CH 15 Licensing, Franchising, and Other Contractual Strategies. Test. An industrial design is intended to _____. Which of the following is provided by the licensor in a licensing agreement? A) a monetary down-payment plus royalties for all products sold. 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. CHAPTER 15 LICENSING FRANCHISING AND. In existing literature, most strategies are appraised as alternatives to exporting, or as alternatives to green-field FDI. 16: Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Ch. Try Shopify free for 3 days, no credit card required. E) adaptation for local. 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. 1. Franchising: Arrangement in which the firm allows u000banother the right to use an entire business system in u000bexchange for fees, royalties or. 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 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. Product Invention. 3. Licensing, Franchising, and Other Contractual Strategies Internal: strategic Register IP target country chain1. g. 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. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. 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 A contractual agreement whereby one company (the. 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. Licensing and franchising. Chapter 15: Licensing, Franchising, and Other Contractual Strategies Key Elements Contractual Entry strategies in. final ch 15 man3600. Essentially, it entails selling the rights to conduct a proprietary business to another individual, usually in a specified geographic region. 2. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. Study Resources. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. 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. Licensing,. Brand owners lease their patents, software, or characters to other companies. includes exchange of intangibles and services 3. In 1974 the company started franchising in the USA and later it was uses in order to expand globally. University University of. _____ these are the items owned by a franchisee that has the same monetary value. export. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. master franchise. An Industrial Design is Intended to _____ Question 2. b. Learn the distinguishing between licensing and franchising and why licensing is not certain alternative on franchising. Terms in this set (22) contractual entry strategies in international business. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. 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. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. Licensing, Franchising, and Other Contractual Strategies 438 Part 5 Functional Area Excellence 464 16. In other words, a licensing agreement grants the licensee the ability to use intellectual. They are governed by a contract that provides the focal firm a moderate level of control over the foreign partner. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. 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. Solved . Flashcards. 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. 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. First, mature products in a domestic market might find new growth opportunities overseas. 11). 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. Both licensing and franchising are really fantastic. If you want to have more autonomy in business decisions with the freedom to make your own vision. Match. Another popular way to expand overseas is to sell franchises. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. Essentially, you need to decide whether you want to buy a franchise or own your own business while pursuing licensing opportunities. 1Explain contractual entry strategies. Low development cost and low risk in overseas expansion are advantages of this entry mode. Partnering, licensing, franchising, joint venture creation, business acquisition, and Greenfield ventures represent the spectrum of market entry opportunities. 4. Licensing and franchising are two international market entry strategies that businesses can use to expand their operations. Mode Characteristics Advantages Disadvantages. Flashcards. Question 2. Create flashcards for FREE and quiz yourself with an interactive flipper. reduce local perceptions of the focal firm as a foreign enterprise Study with Quizlet and memorize flashcards containing terms like 1. Franchising is an example of a contractual vertical marketing system. Franchising is a contractual international market entry mode as a licensing agreement when an organization wants to enter a foreign market quickly with low risk and resource commitment. Question 74. with direct or area franchise forms of licensing (P2a). Chapter 16 - Licensing, Franchising and other Contractual Strategies. The organization that gives the access is the licensor.