Exam 16: Licensing, Franchising, and Other Contractual Strategies

Explain the role of intellectual property rights in foreign market contractual strategies. What constitutes the infringement of intellectual property?

In a system franchising agreement, the franchisor provides ________.

Which of the following is an example of licensing?

Where counterfeiting and piracy are commonplace, companies are reluctant to invent, innovate, and market legitimate products, which reduces consumer choices and ultimately lowers living standards.

Licensing agreements enable energy and defense firms to enter nations that restrict the foreign ownership of businesses related to national security.

________ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset.

Patents provide inventors the right to prevent another person or company from selling or using an invention for up to twenty years.

The purpose of intellectual property rights is to ________.

An industrial design is a logo belonging to an organization whose members use it to identify themselves and associate their products with a level of quality.

Which of the following is characteristic of exclusive licensing agreements?

In a typical licensing agreement, after the relationship is established, the licensor is required to be directly involved in the market and provide ongoing managerial guidance.

When compared to licensing agreements, the relationships established in franchising arrangements are typically volatile and short-term.

Which of the following is an essential method used by a focal firm to protect its intellectual property in a foreign country?

Exporting and foreign direct investing are two common types of contractual entry strategies.

How are trademarks established in the United States and abroad? What are some of the difficulties faced by firms regarding the protection of trademarks? Explain with an example.

Licensing and franchising are complex undertakings and require skillful research, planning, and execution.

An arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or other facility in exchange for compensation is known as offshoring.

Which of the following is true about franchising as an entry strategy?

Which of the following is NOT provided by the licensor?

In a licensing agreement, ________ is responsible for local sales.