Exam 15: Licensing, Franchising, and Other Contractual Strategies

Before undertaking contractual entry strategies abroad, management ________.

Describe the guidelines for protecting intellectual property.

In a master franchising agreement, the master franchisee has the right to subfranchise to other independent businesses and thus assume the role of the local franchisor.

Explain franchising as a foreign market entry strategy, and why franchising is a more comprehensive strategy than licensing.

Laws that govern contractual obligations are uniform across countries; therefore, it makes contract enforcement abroad easier for firms.

Under a build-operate-transfer (BOT) arrangement, a firm or consortium of firms contracts to build a major facility abroad and then transfers ownership to the project sponsor, typically the host-country government or public utility.

In a licensing agreement, the licensee provides ________.

Which of the following is NOT provided by the licensor?

Which of the following is an example of intellectual property?

Which of the following is characteristic of cross-border contractual relationships?

A know-how agreement is one in which the focal firm provides technological or management knowledge about how to design, manufacture, or deliver a product or a service.

Cross-licensing often occurs in the semiconductor and chemical industries, and other intellectual property is acquired in reciprocal licensing arrangements between firms in order to ________.

Wonder Cat Licensing (Scenario) Wonder Cat is a popular, new cartoon series created by the U.S-based All Cartoon Channel (ACC). Currently, the only Wonder Cat item available for sale are shirts that are sold exclusively through the ACC Web site. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions. -Which of the following questions would be more important to evaluate before ACC enters a licensing agreement with the Chinese firm?

Big Boy Burgers (Scenario) Big Boy Burgers (BBB) is an American fast food restaurant chain that has franchises around the world. Recently, BBB managers have been concerned about protecting the firm's intellectual property, which includes the recipes for its unique burger sauces and specialty burger buns. Although BBB has never experienced a theft of intellectual property, the firm's managers feel BBB should be more cautious. Managers are meeting with security and legal experts to discuss the options available to the firm that would protect BBB from future international problems. -Which of the following questions would be more important for the experts to evaluate when determining how to ensure intellectual property protection for Big Boy Burgers?

Which of the following makes it difficult to completely duplicate a food franchise in every global market?

Azoo Government Projects (Scenario) The nation of Azoo needs the assistance of a contractor to construct a new bridge and a subway system. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Representatives of the Azoo government are reviewing the project bids provided by two different international contractors. Contractor A proposes a turnkey contract for Azoo. Contractor B proposes a build-operate-transfer arrangement. -The government of Azoo might select Contractor B in order to ________.

An industrial design is intended to ________.

A key challenge faced by the franchisee is the decreased likelihood of operating an independent business.

Explain how licensing works as an entry strategy into foreign markets. Describe the risks faced by technological firms that enter licensing agreements in foreign countries.

________ is the world's leading licensing firm, with $56.6 billion in revenues.