International Marketing Chapter 9

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21 Questions - Developed by: Carlos Suarez - Developed on: - 7.335 taken

  • 1
    Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation.
  • 2
    Organizations as diverse as Disney, Caterpillar, and National Basketball Association make extensive use of licensing in overseas markets.
  • 3
    The only costs in licensing are the signing agreement and policing it's implementation.
  • 4
    Apple's failure to license it's technology in the pre-Windows era arguably cost the company tens of billions of dollars.
  • 5
    Companies may find that the upfront easy money obtained from licensing turns out to be a very expensive source of revenue.
  • 6
    Sony was the first company to manufacture and market a transistor radio.
  • 7
    One of the advantages of a license arrangement is that it can create export market opportunities and open the door to a high-risk manufacturing relationship.
  • 8
    Companies that use contract manufacturing provide technical specifications to a sub-contractor or local manufacturer.
  • 9
    Executives at Guatemala's Pollo Campero SA knew how to spot a market entry opportunity by observing passengers flying to the United States from Guatemala City and San Salvador who often carried packages of the company's spicy chicken on board the planes.
  • 10
    Franchising is another variation of licensing strategy.
  • 11
    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.
  • 12
    In China, regulations require foreign franchisers to directly own two or more stores for a minimum of one year before franchising.
  • 13
    McDonald's has learned the wisdom of leveraging local market knowledge by granting franchisees considerable leeway to tailor restaurant interior designs and menu offerings to suit country-specific preferences and taste.
  • 14
    Franchising in a global market is actually a market entry strategy that is typically executed with less localization than licensing.
  • 15
    Foreign direct investment figures reflect investment flows out of the home country as companies invest in or acquire plants, equipment, or other assets.
  • 16
    Foreign investment can take the form of minority or majority shares in joint ventures, minority or majority equity stakes in another company, or outright acquisition.
  • 17
    A joint venture with a local partner represents a more extensive form of strategy that is similar to exporting and licensing.
  • 18
    A lesson that can be learned from Anheuser-Busch's experience in Japan is that it is better to give control to a local partner via a licensing agreement rather than making a major investment.
  • 19
    The joint venture between Corning Glass and Mexican manufacturer Vitro failed primarily due to conflicts arising out of cultural differences.
  • 20
    GM and South Korea's Daewoo Group formed a joint venture which helped Daewoo improve it's competitiveness. The venture was terminated since Daewoo prevented the import of GM cars to Korea.
  • 21
    In an alliance, one has to learn skills of the partner. For example, Toyota learned many new things from it's partnership with GM.

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