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Questions and Answers
What is an advantage of licensing?
What is an advantage of licensing?
- Access to quality training
- Requires little capital (correct)
- Access to extensive advertising
- Use of well-known trademark or trade name
What is a disadvantage of franchising?
What is a disadvantage of franchising?
- Access to quality training
- Few start-up problems
- Onerous reporting requirements (correct)
- Lower cost of supplies and materials
What might be a disadvantage of a franchise's termination policies?
What might be a disadvantage of a franchise's termination policies?
- Use of well-known trademark or trade name
- Allowing little security (correct)
- Access to lower cost and centralized buying
- Access to quality training
What is a possible disadvantage of a franchiser saturating your territory?
What is a possible disadvantage of a franchiser saturating your territory?
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Why might the costs of supplies or materials be more expensive in a franchise?
Why might the costs of supplies or materials be more expensive in a franchise?
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Study Notes
Entry Modes in International Marketing
- There are five main entry modes in international marketing: franchising, licensing, manufacturing, management contracts, and exporting.
Franchising
- Franchising is a continuing relationship between a franchisor and a franchisee.
- In this relationship, the franchisor provides a licensed privilege to the franchisee to do business.
- The franchisor also offers assistance in organizing, training, merchandising, marketing, and managing in return for a consideration.
Definition of Franchising
- Franchising is a form of business by which the owner (franchisor) of a product, service, or method obtains distribution through affiliated dealers (franchisees).
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Description
Test your knowledge of entry modes in international marketing with this quiz. Explore the advantages and disadvantages of various entry modes and understand the dynamics behind choosing different entry modes. This quiz is designed to help you grasp the key concepts in international marketing strategies.
