Podcast
Questions and Answers
What is the primary characteristic of licensing as a mode of entry into a foreign market?
What is the primary characteristic of licensing as a mode of entry into a foreign market?
- Rapid access to the market with minimal investment (correct)
- Exclusive rights to technology and patents
- Complex legal and cultural barriers to entry
- Complete ownership and management responsibilities
What does the licensor provide in a licensing agreement?
What does the licensor provide in a licensing agreement?
- Ownership and management responsibilities
- Financial investment and infrastructure
- Technology, work methods, and brand names (correct)
- Rights to enter any international location
Why is licensing considered a low-risk mode of entry into a foreign market?
Why is licensing considered a low-risk mode of entry into a foreign market?
- Licensing requires minimal financial investment
- The licensor assumes all legal barriers
- It ensures complete control over the market
- Infrastructure is provided by the licensee (correct)
What was the purpose of Asahi Breweries Ltd. establishing a licensing agreement with the Canadian Molson Brewery?
What was the purpose of Asahi Breweries Ltd. establishing a licensing agreement with the Canadian Molson Brewery?
What is a key disadvantage of licensing in regards to quality control?
What is a key disadvantage of licensing in regards to quality control?
What gives the franchisee the right to market a product or service using the trademark or trade name of another business?
What gives the franchisee the right to market a product or service using the trademark or trade name of another business?
What is a potential disadvantage of franchising that involves restrictions on products or services offered and geographic territory?
What is a potential disadvantage of franchising that involves restrictions on products or services offered and geographic territory?
What gives franchisees a certain level of independence when operating their business?
What gives franchisees a certain level of independence when operating their business?
What requires due diligence regarding which organization to partner with, similar to investing in an organization in the stock market?
What requires due diligence regarding which organization to partner with, similar to investing in an organization in the stock market?
What may impact the licensor's parent brand if there are any quality control issues on behalf of the licensee?
What may impact the licensor's parent brand if there are any quality control issues on behalf of the licensee?
