Exam 14: Direct Investment and Collaborative Strategies

Licenses are often given to companies owned in whole or in part by the licensor.

In a licensing arrangement,it is rare for companies to agree to a front-end payment to cover technology transfer costs.

What is a master franchise?

It is important when setting up a collaborative arrangement to agree on mutual goals and expectations.

Judson Baked Goods,a U.S. firm,grants the use of its trademark to a company in Sweden and provides the Swedish company with operational assistance on a continuing basis. Judson is most likely involved in ________.

Without a proven track record in collaborative arrangements,a company will most likely need to ________.

Turnkey projects generally differ from other forms of international business in that ________.

A licensing agreement is a contract for the granting of rights on tangible property.

The sums needed to develop and market many new products are out of reach of most companies acting alone.

Exporting is usually more feasible when transportation costs are high rather than low in relation to production costs.

Tom,a manager at an MNE,has been given the task of identifying a pool of companies with which the firm might form collaborative arrangements. Which of the following activities would be LEAST useful for Tom?

What motives do businesses have for entering into collaborative arrangements? What are some of the problems associated with collaborative arrangements?

What is a turnkey operation? What features generally make turnkey operations different from other collaborative arrangements?

What problem most likely arises when a company wishes to sell techniques/technology that it has either not yet fully developed or used commercially?

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets. A reason for doing this is to ________.

What is an international joint venture?

What is the difference between licensing and cross-licensing? What factors do firms need to consider before entering into licensing agreements?

Executives at a U.S. firm are debating whether to start a new operation in Russia or acquire an existing one. Which of the following factors best supports a decision to start up a new operation in Russia?

Companies typically use various international operating forms simultaneously for all the following reasons EXCEPT which one?