Create flashcards for FREE and quiz yourself with an interactive flipper. Securities law govern. 47 I Use contemporary technology to minimize counterfeiting. licensing. Learn this differs between licensing and franchising and why general is not an alternative for franchising. give later entrants a cost advantage over early entrants. reduce local perceptions of the focal firm as a foreign enterprise Study with Quizlet and memorize flashcards containing terms like 1. Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest. On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. Turnkey contracting. Contractual entry strategies in international business. 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. In franchise, a franchiser sells a property to the franchisee but controls over the procedures of the business. 6 Understand other contractual entry strategies. Test. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. 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. Although both franchising and MSCs are non-equity modes, there are important differences between. 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. Ch. Franchising. and win! Microsoft Volume. Licensees also enjoy lowered risk because they're usually entering the marketplace with a known quantity and a built-in customer base. The difference is that the franchiser provides a bundle of services and products to. Merger and Acquisition ii. Test. External: Operating Enviornment. B. Global Market Opportunity Assessment 348. 16: Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Ch. 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. Learn. Create flashcards for FREE and quiz yourself with an interactive flipper. , Contractual alliances include all of the following except: a. Cross-border exchanges in which the relationships between the focal firm and its foreign partner is governed by an explicit contract. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. 2 Exporting 7. 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. Licensing, franchising and other contractual strategies. licensing. Florida State University. , Licensing. University High School High School Regions. at completion of the contract, the foreign client is handed the "key. contractor supplies managerial know how. cross-border exchanges in which relationship between the focal firm and its. International Business: The New Realities, 5e, Global Edition (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies. Question 4. 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. Find Flashcards. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. On the other hand, franchising is a business model whereby a company (franchisor) allows another company (franchisee) to use its. accepting a business model for doing a business in a traditional manner. Unique Aspects of Contractual Relationships. Chapter 15: Licensing, Franchising, and Other Contractual Strategies Key Elements Contractual Entry strategies in. Learn. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. Setting up a new wholly owned subsidiary in the host country. Licensing, Franchising, and Other Contractual Arrangements Michael Z. True/False . Terms: a. An industrial design is intended to ________. Advantages. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. 2. It reduces risks for both parties. Advantages and disadvantages of franchising. 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. 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. licensing team. Second, some firms find it less risky and more profitable to export. real business leading guides that top everything from franchises basics to advanced vote growth strategies. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. licensing. 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. -risk. Brand licensing is the act of giving permission to another company to use your business’s intellectual property (IP). Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. c. Lisanslama, Franchising ve diğer Sözleşme Stratejileri Learn with flashcards, games, and more — for free. fFranchising as an Entry Strategy. Study Chapter 16 flashcards. AI Homework Help. Franchising only deals with the provision of a service, while licensing can be for both services and products. trading bloc c. contract manufacturing. Match. 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. Learn. Expert Help. Strategy and Organization in the International Firm 316 12. Match. Any licensee can produce and sell products under your name or offer services using your brand. 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. Partnering, licensing, franchising, joint venture creation, business acquisition, and Greenfield ventures represent the spectrum of market entry opportunities. On the other hand, international licensing is a foreign market entry mode that presents some. Licensing, Franchising and. 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. Therefore, a franchise includes a licence. In other words, a licensing agreement grants the licensee the ability to use intellectual. 1. It. Both licensing and franchising are really fantastic. Browse With TopicA licensing agreement is a contract between two parties (the licensor and licensee) in which the licensor grants the licensee the right to use the brand name, trademark, patented technology, or ability to produce and sell goods owned by the licensor. pdf from ECON 102 at Warsaw School of Economics. Licensing, Franchising, and Other Contractual Strategies. In franchising, the franchisor licenses the. Compromises between short-term transactions and long-term solutions. The country-of-origin effect refers to _____. Flashcards. 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. Match. According to Franchise Business Review, franchising fees typically range from $25,000-$50,000 on average. Licensing. Flashcards. 2. Franchising 5. Devaluation decreases the value of currency in relation to other currencies. For example, Ranbaxy has licensing arrangement in countries like Indonesia and Jordan. University University of. Test. Many Indian firms can use licensing or franchising of the overseas market, particularly the developing countries. Contract manufacturing iv. Similar to a licensing agreement, under a franchising Granting rights on an intangible property, like technology or a brand name, to a foreign company for a specified period of time and receiving a royalty in return. 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 Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. provides technical specifications to a subcontractor or local manufacturer. Flashcards. Flashcards. Licensing as an Entry Strategy a. Global Market Opportunity Assessment IV. , licensing and franchising) have lower up-front costs than investment modes do. Chapter 15: Licensing, Franchising, and Other Contractual Strategies. chapter 16 licensing, franchising, and other contractual contractual entry strategies in international business: exchanges where the relationship between the. Essentially, you need to decide whether you want to buy a franchise or own your own business while pursuing licensing opportunities. When the parties make licensing or franchising agreement, the parties should critically. BUS. if the franchisor has already achieved considerable success in franchising in its domestic market. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. In Licensing agreement and franchise, an overseas-based business will pay you a royalty or commission to use your. C. Flashcards. Solved . Licensing, Franchising, and Other. 15- Licensing, Franchising and other. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. Ch. Flashcards. 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. Brand owners lease their patents, software, or characters to other companies. Your matched tutor provides personalized help according to your question details. One of the major differences when it comes to franchising vs. Similarly, explicit contracts define franchising relationships. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. 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. 5. agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a. Table 7. accepting a franchise for dealing with the traditional products. Franchising: Arrangement in which the firm allows u000banother the right to use an entire business system in u000bexchange for fees, royalties or. Franchising is a faster, cheaper form of expansion than adding company-owned stores, because it costs the parent company much less when new stores are owned and operated by a third party. True/False . Test. 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. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. Learn. The franchisee is. Typically, this licence will cover know-how and other confidential information, trademarks. Unique aspects of contractual relationships. 3. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features NFL Sunday Ticket Press Copyright. View Chapter 16. Study with Quizlet and memorize flashcards containing terms like Inbound licenses, Outbound licensing, Contractual entry strategies in international business and more. The most use contractual entry modes are Licensing, Franchising and Turnkey projects which is going to be explained below. 15. 25 “Market entry options”). Often regarded as second best to export or direct investment. If you think of a franchisor (the brand) as a. Buckley BA (Econ), MA, Phd Chapter 90 Accesses Abstract This. Exporting. Several strategies for franchising in East. C) The licensee cannot cancel the contract with the. 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. 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. chapter 16 licensing, franchising, and other contractual contractual entry strategies in international business: exchanges where the relationship between the. 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. Fast entry, low risk. It is quite similar to the "franchise" operation. : Licensing is a contractual agreement in which a licensor grants a licensee the right to use its intellectual property,. Abstract. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. The difference between a franchise contract and a licensing contract is that a. 4. Choose from 29 different sets of Licensing, Franchising and other contractual strategies flashcards on Quizlet. includes exchange of intangibles and services 3. cavusgil ib im 15 - CHAPTER 15 LICENSING FRANCHISING AND OTHER CONTRACTUAL STRATEGIES DETAILED CHAPTER OUTLINE INTRODUCTION The opening vignette is. Royalties. Typically, the franchise agreement is for ten years. Verified Answer for the question: [Solved] When compared to licensing agreements, the relationships established in franchising arrangements are typically volatile and short-term. 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. 15 ~ Licensing, Franchising, and Other Contractual Strategies. 15 Licensing, Franchising and Other Contractual Strategies. Franchising makes up 10% of the U. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. Licensing, Franchising, and Other Contractual Strategies. Two Types of Contractual Relationships. Focal firm has moderate level of control over the foreign partner. Let’s take a look. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. 3 Describe the advantages and disadvantages of licensing. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. A modern approach to international business. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. 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. export restraint b. Marketing in the Global Firm 464 17. Test. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. A) franchise contract is more specific and usually longer in duration. B) The franchisor holds much power, including superior bargaining power. 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. 2 Understand licensing as an entry strategy. g. Two Types of Contractual Relationships. turnkey contracting. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising, 2) For Walt Disney. Meaning. 4. Flashcards. Learn. Disadvantages of franchising to the franchisee. 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. Franchising. From a licensor standpoint, there are fewer risks in the selling and service of what is being. d. View BUS 417 . - contract provides focal firm with moderate level of control over foreign partner. Change Product. Franchising is an advanced form of licensing in which the the franchisor allows the franchisee, the right to use an entire business system in exchange for compensation. Terms in this set (22) contractual entry strategies in international business. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. focal firm does everything for business and hands it over to customer after training. , Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in. It’s crucial to understand the key differences and similarities between these two popular growth strategies. 7 Using Demographics to Guide Global Marketing Strategy 6. Licensing, Franchising and other Contractual Strategies. Unique Aspects of Contractual Relationships. 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. Uploaded By ebrarpatriot. Docsity. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. Franchising is governed by an elaborate agreement specifying the responsibilities and duties of both the parties involved. Franchising. 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. The present model permits any strategy to be compared with any other strategy. 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. Either way, the licensor gets a kickback—as a. 1 Explain contractual entry strategies. Contractual Entry Strategies Contractual entry strategies Two common types of contractual entry strategies are licensing andLicensing. Licensing, Franchising, and Other Contractual Strategies. industry are franchising and management-service contracts (MSC). Which of the following is key to licensing strategy success? Avoidance of barriers for foreign companies doing business. Learn. Licensing is designed to reduce the risks involved in doing business for everyone involved. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Learn. and industry experts about instructions to franchise your business. 1. Change Message. 2. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. Which mode is to be used in which situation 5. Franchising is another variation of licensing 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. 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”. 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. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. licensing is the limitation placed on licensing agreements. 1. [2] defined market entry as "a planned move into a new or adjacent market for the creation and delivery of offerings. From a licensee standpoint, there are fewer risks in product development, market testing, manufacturing, and distribution. embargo, In the context of various strategies for reaching global markets, which of the following strategies. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. doc from MANAGEMENT BCPC202 at University of Professional Studies,Accra. Match. turnkey contracting. 1 International-Expansion Entry Modes. They typically include the exchange of intangibles and services. Click the card to flip 👆. 2. Studying is made a lot easier and more fun with our online flashcards. Cavusgil, 3edition, Licensing Franchising and Other Contractual Strategies, Licensing, Franchising, Franchise, Chapter16. Exporting and Foreign Direct Investing are Two Common Types of Contractual. Here are 10 market entry strategies you can use to sell your product internationally: 1. Studying is made a lot easier and more fun with our online flashcards. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in IB, Intellectual Property, Contractual Entry Strategies and more. 3Describe the advantages and disadvantages of licensing. Focal firm has moderate level of control over the foreign partner. These options vary in terms of how. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual Property, Intellectual Property Rights and more. . Contract Manufacturing: - This entry mode is a cross between licensing and investment entry. make it easy for later entrants to win business. True or false: Transportation costs would have an effect on which entry mode a company uses. Equity relations allow firms to have some direct control, while contractual does not. intellectual property. Exporting. and popular strategies for business expansion. The firm that grants such authorization to the other firm is known as the licensor, and the firm in the foreign. 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. is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. 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. 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. International Business: The New Realities, 5th Edition caters to a post-millennial student audience, the most diverse and educated generation to date. a. licensee: In a licensing relationship, the buyer of the produce, service, brand or technology being licensed. From a licensee standpoint, there are fewer risks in product development,. School Anadolu University; Course Title BUS 1332; Type. 5. Created by. Protecting Intellectual Property. Special licensing arrangement; Contract between a parent company-franchisor and a franchisee that allows the franchisee to operate a business developed buy the franchisor in return for a fee and adherence to franchise-wide policies; Has great appeal to local entrepreneurs anxious to learn and apply Western-style marketing techniquesStudy with Quizlet and memorize flashcards containing terms like Starbucks' relentless pursuit of global market opportunities illustrates the fact that most firms face a broad range of strategy alternatives. 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. Multiple Choice . Contractual Entry Modes 3. 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. Match. 2. Study with Quizlet and memorize flashcards containing terms like 1) For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global. In existing literature, most strategies are appraised as alternatives to exporting, or as alternatives to green-field FDI. Foreign. Flashcards. Introduction. My. a. A) the licensee B) patent. Contractual entry strategies 2. The Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. It's also easier for the company to extricate itself from the situation if the results aren't favorable. True/False . Licensing, on the other hand, is a form of private contract between parties and. Keep in mind, however, this is strictly the franchise fee and doesn’t include other startup costs to open the. patent. 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. Zhao et al. Learn the distinguishing between licensing and franchising and why licensing is not certain alternative on franchising. Reasons for Licensing:Get Quality Help. Franchising. -the different modes can be further classified on the basis of equity or non-equity requirements. A license allows the licensee to use, make and sell an idea, design, name, or logo for a fee. By signing the franchise contract, a franchisee typically surrenders. In exchange, you get royalties or other payments. The equity modes category includes joint ventures and wholly. 2. 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. Licensing, Franchising and other Contractual Strategies. It stated the market entry strategies of global hotel industry followed Cruz (1999)’s ‘Management Contract first, franchising latter’ strategy. 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. An Introduction A. Created by. Exporting. Flashcards. Solved . Disadvantages. Franchising VS Licensing. strategic alliances. Franchising. provides technical specifications to a subcontractor or local manufacturer. 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. 8 billion. Cost of Licensing vs. D) strategic decision making. distributing or retailing products that are traditionally manufactured by the franchisor. Week 12 Licensing, Franchising, and Other Contractual Strategies 1. licensing, don’t forget that they are separate concepts and each of them offers promising prospects. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. 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. They typically include the exchange of intangibles. Learn the differences between licensing and franchising and why licensing is not an optional to franchising. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. Chapter 16: Licensing, Franchising and other Contractual Strategies. D) franchise contract involves less control and. Contractual entry strategies in international business. c. 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.