Questions and Answers
What is the primary characteristic of licensing as a mode of entry into a foreign market?
Rapid access to the market with minimal investment
What does the licensor provide in a licensing agreement?
Technology, work methods, and brand names
Why is licensing considered a low-risk mode of entry into a foreign market?
Infrastructure is provided by the licensee
What was the purpose of Asahi Breweries Ltd. establishing a licensing agreement with the Canadian Molson Brewery?
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What is a key disadvantage of licensing in regards to quality control?
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What gives the franchisee the right to market a product or service using the trademark or trade name of another business?
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What is a potential disadvantage of franchising that involves restrictions on products or services offered and geographic territory?
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What gives franchisees a certain level of independence when operating their business?
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What requires due diligence regarding which organization to partner with, similar to investing in an organization in the stock market?
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What may impact the licensor's parent brand if there are any quality control issues on behalf of the licensee?
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