Patents provide inventors the right to prevent another person or company from selling or using an invention for up. Test. Verified Answer for the question: [Solved] Which of the following is an advantage of franchising to the franchisee? A) reduced expenses as the franchisor provides supplies, equipment, and products B) Minimum initial investments or royalty payments are applicable. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business: Other mark ups and contributions like finance charges, sale of related products etc. Flashcards. •Franchising is an advanced form of licensing in which the focal firm, the franchisor,. foreign direct investment. There are six basic options available: (1) exporting, (2) licensing, (3) franchising, (4) creating a joint venture or strategic alliance (5) acquisition/creating a wholly owned subsidiary, and (6) greenfield/wholly owned subsidiary (Table 9. One of the major differences when it comes to franchising vs. firm can pursue individually or in conjunction with other entry strategies 4. 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. Business format franchising accounts for most of the explosive growth in franchising that has occurred in the past five decades. Multiple Choice . Mode Characteristics Advantages Disadvantages. A licensing is an agreement whereby a licensor grants the rights to intangible property (patents, inventions, formulas, processes, designs, copyrights, and trademarks) to another entity (licensee) for a specified period and in return, the licensor receives a royalty/fee from the licensee. Licensing & 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. 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. 2 Franchising as an expansion strategy. caitlyn_stryker. Franchising iii. contractor supplies managerial know how. CONTRACTUAL ENTRY STRATEGIES Two common types of contractual entry strategies are licensing and franchising. Flashcards. export. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. A. Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. 4. 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. c. e. It reduces risks for both parties. Franchise Agreements are the core operating principles that define the relationship between the franchisor and the franchisee. Here are 10 market entry strategies you can use to sell your product internationally: 1. It stated the market entry strategies of global hotel industry followed Cruz (1999)’s ‘Management Contract first, franchising latter’ strategy. 7 Using Demographics to Guide Global Marketing Strategy 6. CHAPTER 15 LICENSING FRANCHISING AND. Read other and watch their success stories!. But the Mouse’s actual 2023 number. 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. Licensing, Franchising, and Other. Risk in franchising. 3. Key challenges faced by the franchisee is the decreased likelihood of operating an independent business. 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. b. 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. format franchising — the licensing of a trademark in conjunction with a prescribed business format and method of operation can be dated to the nineteenth century, but did not develop in earnest until the 1950's. Foreign Direct Investment and Collaborative Ventures 408 15. A franchise is a business model in which a business owner licenses their business to another individual or organization. On the other hand, franchising is a business model whereby a company (franchisor) allows another company (franchisee) to use its. 2. 1. Study with Quizlet and memorize flashcards containing terms like contractual entry strategies in international business, intellectual property, intellectual property rights and more. Process. Of course, when Switzerland let the value of its franc 30% against the euro, the cost of exports increased, and Swiss goods when bought with the franc, could be purchased at a large. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. Verified Answer for the question: [Solved] In a licensing agreement, ________ is responsible for local sales. Test. Aspect Franchising Licensing; Definition: Franchising is a business model where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand, systems, and support in exchange for fees and royalties. 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. Learn faster. Equity relations allow firms to have some direct control, while contractual does not. BUS 325 Ch. The specific definition of the license. C) cross licensing. 1 Licensing. Typically, the franchise agreement is for ten years. For example, a restaurant or a salon can be franchised, but not the products they use to provide the said services. fFranchising as an Entry Strategy. 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) _____. View MIB_8_MSLewandowska_2018_Fra. Provide dynamic, flexible choice. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. 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. contract manufacturing. Leasing is Especially Beneficial to _____ Question 80. Franchising is governed under the Franchise Act 1998 (“the Act”) and is regulated by the Registrar of Franchises (“Registrar”) under the purview of Ministry of Domestic Trade and Consumer Affairs. Contractual Entry Strategies Contractual entry strategies Two common types of contractual entry strategies are licensing andLicensing. 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. Type of Entry. 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. 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. Learn. Typically, this licence will cover know-how and other confidential information, trademarks. 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. strategic alliances. Flashcards. However, they enjoy a lot more freedom than franchisees. Foreign. When a business enters a foreign market after other foreign firms, the situation is defined as ______ entry. Flashcards. 1. Licensing specifies the territory as well as period. True/False . B) It ensures payment from the licensee to the licensor upon receipt of an export shipment. Coca Cola is an excellent example of licensing. Firms can pursue them independently or in conjunction with other entry strategies. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: 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. 2. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other. Multiple Choice . 2. When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________. cross border interaction between focal firm and foreign firm governed by a contract. , T/F Organizations as diverse as Disney, Caterpillar,. Doc Preview. 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. Match. 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). 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. Two Types of Contractual Relationships. The main reasons companies form strategic alliances are to gain access. 7. 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. 15. 4 illustrates the nature of the franchising agreement A typical. 2. 3. fAdvantages & Disadvantages of. 25 “Market entry options”). Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. 1. ) Bringing ideas for business in other countries to new markets. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. final ch 15 man3600. The firm that grants such authorization to the other firm is known as the licensor, and the firm in the foreign. Ask AI New. 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. Typically include the exchange of intangibles and services. B) An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its. provides technical specifications to a subcontractor or local manufacturer. A. Cross-border exchanges in which the relationships between the focal firm and its foreign partner is governed by an explicit contract. Dispute settlement 4. 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. Lisanslama, Franchising ve diğer Sözleşme Stratejileri Learn with flashcards, games, and more — for free. Which of the Following is Provided by the Licensor in a Licensing. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. As a disclosure, my company is a franchise providing. 47 I Use contemporary technology to minimize counterfeiting. Direct exporting is often considered the default choice for new market entry. _Lic_Update (2). Licensing ii. 15. 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. Master Franchise. Verified Answer for the question: [Solved] Which of the following is characteristic of exclusive licensing agreements? A) The licensor is not allowed to interfere with the production or marketing of the licensed asset. University High School High School Regions. Test. accepting a franchise for dealing with the traditional products. Mode Characteristics Advantages Disadvantages. import/export, licensing c. The organization that obtains the access is the licensee. 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. While deciding between franchising vs. The license agreement permits the use of trademarks, nothing more. The non-equity modes category includes export and contractual agreements. Exhibit 15. agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a. 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. Chapter 16 - Licensing, Franchising and other Contractual Strategies. Since franchisees will assume many of the responsibilities otherwise shouldered by. 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. Franchising. Solved . View Homework Help - Week 4 - Subway Case. Royalties. 15. Licensing is designed to reduce the risks involved in doing business for everyone involved. In franchising, decision rights encompass the assignment of rights for use of system- and outlet-specific assets in contracts. 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. 1. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: 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. Cost of Licensing vs. Fresh features from the #1 AI-enhanced learning platform. Two Types of Contractual Relationships. B) franchising. Under a franchise agreement, a company grants a foreign company the right to use its brand name and sell its products. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. licensing is the limitation placed on licensing agreements. Licensing. cross-border exchanges in which the relationship between the focal firm & its foreign partner is governed by an. Licensing is an arrangement by which the owner of intellectual property grants another. b. Terms in this set (19) Contractual entry strategies. includes exchange of intangibles and services 3. 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. Licensing is governed by a licensing agreement, which involves a one-time transfer of property or rights for a fee. to a foreign partner in exchange for a continuous the firm allows another the right to use an specific products, as well as the rights to distribute. Turnkey Project b. Importing involves purchasing products from other countries and reselling them in one’s own. 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. 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 and franchising are two international market entry strategies that businesses can use to expand their operations. -most often begun with export. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. An industrial design is intended to _____. 4. Several companies get patent their technology and other products that they don’t want anyone else to use without their consent. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual Property, Intellectual Property Rights and more. the franchising and licensing as market entry mode in general and in hotel industry. A Definition of the Franchise Concept In its broadest sense, a “franchise” is a contractual relationship between a “franchisor” and an independent “franchisee” whereby the former licenses the latter to distribute aFranchising: Franchising is a common strategy used by businesses seeking to expand their operations in a risk-conscious manner. Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. Discover. They typically include the exchange of intangibles and services. Abstract. , Licensing. 1. A) franchise contract is more specific and usually longer in duration. equity mode of entry into foreign markets limited to a contractual agreement. Ch 16: Licensing, Franchising, and other Contractual Strategies. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. Some firms view licensing as a supplementary strategy to other entry strategies, such as exporting or FDI. This part concerns the sale of knowledge rather than the sale of goods—licensing, franchising, management contracts and other similar arrangements. 15- Licensing, Franchising and other. Why would a company choose to use a contractual mode of entry rather than an investment mode? Contractual forms of entry (i. Many firms build biotech tags,. Create flashcards for FREE and quiz yourself with an interactive flipper. Question 2. turnkey contracting. Brand licensing is the act of giving permission to another company to use your business’s intellectual property (IP). Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Intellectual property rights and more. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. 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. 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. commercial centers provide the following services: business facilities; translation and clerical services; a commercial library with legal information; and assistance with contracts and export/import arrangements. they typically include the exchange of intangibles and services 3. Methods for General Eintrittspreis into the Total Marketplace. Learn. Two common types of contractual entry strategies are licensing and franchising. 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: 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. One of the major differences when it comes to franchising vs. Major global. Another popular way to expand overseas is to sell franchises. Flashcards. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. Test. Two common types of contractual entry strategies are licensing and franchising. Meaning. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. 1Explain contractual entry strategies. -the amount of equity required affects the risk,return, and control that it will have in. 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. RenaeBoleyn. These options vary in terms of how much. Licensing/franchising also opens the doors. Franchising is an example of a contractual vertical marketing system. 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. C. Licensing •A contractual agreement whereby one company (the licensor) makes an asset. One could say that franchising is a special type of licensing arrangement inContractual Entry Modes A company can use a variety of contracts such as : licensing, franchising, management contracts, and turnkey projects to market highly specialized assets and skills in markets beyond its nation’s border. 6 Joint Ventures Chapter 8. Licensing, Franchising and other Contractual Strategies. 0 (1. 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. Similar to a licensing agreement, under a franchising agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a foreign company for a specified period of time and receives a royalty in return. 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. • Understand infringement of intellectual property Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Leasing is especially beneficial to _____. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. D)It is typically characterized as an unstable, short-term entry. Subway is a company that has spread worldwide through its expansion strategy. All of the above. 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. Test. 99/yearQuiz 15: Licensing, Franchising, and Other Contractual Strategies. Advantages. Its goal. The definition is important because franchises are covered by securities law while licenses are covered by contract law. 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. Studying is made a lot easier and more fun with our online flashcards. ( True/False ) Question 1Start studying Ch 16: Licensing, Franchising, and other Contractual Strategies. 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. It. firm. arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified. 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. Low control, low local knowledge, potential negative environmental impact of transportation. Ch. 15. 4. Licensing 2. 5 Explain the advantages and disadvantages of franchising. They often. Exporting is a low-risk strategy that businesses find attractive for several reasons. strategies. These options vary in terms of how. 2. It reduces risks for both parties. Franchising is governed by an elaborate agreement specifying the responsibilities and duties of both the parties involved. Solved . Create flashcards for FREE and quiz yourself with an interactive flipper. When considering a venture in international markets, there are some significant tactical and strategic decisions to be effected. pdf from ECON 102 at Warsaw School of Economics. Verified Answer for the question: [Solved] Which of the following is TRUE about cross-border contractual relationships? A) It is a more visible strategy than FDI and draws a lot of criticism from the local market. Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures) "Moderate": -control available to the focal firm over foreign operations. Study with Quizlet and memorize flashcards containing terms like Build-operate-transfer (BOT), contractual entry strategies in international business, Intellectual Property and more. Expert Help. Franchising. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. embargo, In the context of various strategies for reaching global markets, which of the following strategies. focal firm does everything for business and hands it over to customer after training. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. The costs of licensing and franchising vary widely depending on many factors. Licensing, Franchising, and Other Contractual Strategies. Learn faster with spaced repetition. The book connects to students of the technological age, facing a diverse and evolving economic environment fueled by. Contractual Entry Strategies. S. 2 Exporting 7. The five most common methods include exporting, licensing and franchising, partnering and strategic alliance, acquisition, and Greenfield venture. 1. Franchising. Franchising is common in manufacturing industries while licensing is primarily used in service industries. S. Chapter 15. provides technical specifications to a subcontractor or local manufacturer. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. Brand owners lease their patents, software, or characters to other companies. a. Voluntary agreements between firms. Created by. 8 Target Market Selection. Greenfield Strategy v. licensing. By entering your email, you agree to receive marketing emails from Shopify. 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. destineeashlee. Two common types of contractual entry strategies are licensing and franchising. View Chapter 16. Chapter 16- Licensing, Franchising, and Other Contractual Strategies Flashcards | Quizlet Chapter 16- Licensing, Franchising, and Other Contractual Strategies 5. 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. patent. A license allows the licensee to use, make and sell an idea, design, name, or logo for a fee. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. An Introduction A. master franchise. , Licensing Agreement, Copyright Licensing and more. in exchange for royalties, license fees, or some other form of compensation Patent Trade secret Brand name Product formulations. Ask AI New. 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. Exporting and Countertrade; 14. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising, 2) For Walt Disney. Question 1. • 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. Global Market Opportunity Assessment IV. . b. The definition is important because franchises are covered by securities law while licenses are covered by contract law. Two common types of contractual entry strategies are licensing and franchising. BUS MISC. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. , Exporting and foreign direct investing are two common types of 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. 15. trading bloc c. Which of the following is key to licensing strategy success? Avoidance of barriers for foreign companies doing business. The license agreement permits the use of trademarks, nothing more. Question 74. Chapter 16 - Licensing, Franchising, and Other Contractual Strategies. Protecting Intellectual Property. d. In the franchising packages trademarks, copyright, patents and other things often are included. 4. Essentially, you need to decide whether you want to buy a franchise or own your own business while pursuing licensing opportunities. Learn. The country-of-origin effect refers to _____. ( Multiple Choice) Question 2. 6. Licensing as an Entry Strategy a. 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. Flashcards. External: Operating Enviornment. CONTRACTUAL STRATEGIC ALLIANCES i. Second, some firms find it less risky and more profitable to export. Try it free3. 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. IBUS CH 15 Licensing, Franchising, and Other Contractual Strategies. Match. and popular strategies for business expansion. B) franchise contract must include a foreign government. 15. Unique aspects of contractual relationships. Contractual entry strategies in int’l business – cross border exchanges where the. Although both franchising and MSCs are non-equity modes, there are important differences between. Change Product. marijaazz. The license has much stricter restrictions than the franchise.