3. Study with Quizlet and memorize flashcards containing terms like T/F Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. Solved . Protecting Intellectual Property. When the executives in charge of a firm decide to enter a new country, they must decide how to enter the country. the positive or negative perception of firms and products from a certain country. S. commercial centers provide the following services: business facilities; translation and clerical services; a commercial library with legal information; and assistance with contracts and export/import arrangements. Study with Quizlet and memorize flashcards containing terms like Strategic alliances involve: a. Contract Manufacturing: - This entry mode is a cross between licensing and investment entry. Merger and Acquisition ii. Terms: a. The costs of licensing and franchising vary widely depending on many factors. 15. Franchising allows franchisors to function effectively with a much leaner organization. Verified Answer for the question: [Solved] Which of the following is an example of licensing? A) An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada. Post termination issues. Licensing is designed to reduce the risks involved in doing business for everyone involved. firm can pursue individually or in conjunction with other entry strategies 4. They often. 1 Explain contractual entry strategies. A) bribe government officials to reduce nontariff trade barriers B) have a subjective view of moral and ethical standards C) conduct advance research on the host country's laws on intellectual property D) appoint managers from the. Flashcards. As it becomes evident from the definition, the transfer of the right of use is arranged in a license contract. cross-border exchanges in which the relationship between the focal firm & its foreign partner is governed by an. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. Reasons for Licensing:Get Quality Help. It's also easier for the company to extricate itself from the situation if the results aren't favorable. , T/F Organizations as diverse as Disney, Caterpillar,. e. Table 7. Question 14. The non-equity modes category includes export and contractual agreements. -resource commitment. Doc Preview. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. Turnkey projects 3. wholly owned subsidiaries. Licensing: An arrangement in which the owner of intellectual property. Equity relations allow firms to have some direct control, while contractual does not. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. L11 - Licensing, Franchising and other contractual strategies - Virginia Cathro study guide by Rebecca_Stevenson6 includes 36 questions covering vocabulary, terms and more. By signing the franchise contract, a franchisee typically surrenders. Coca Cola is an excellent example of licensing. ) Bringing ideas for business in other countries to new markets. A franchise is a business model in which a business owner licenses their business to another individual or organization. Business model: The first difference is in the business model. Stage Three: Specify a specific format that is either equity based or contractual (nonequity based). The difference is that the franchiser provides a bundle of services and products to. Multiple Choice . Two common types of contractual entry strategies are licensing and franchising. Franchising is another variation of licensing strategy. when the franchisor has been successful domestically because of unique products and advantageous operating procedures and systems. Foreign Direct Investment and Collaborative Ventures; 15. The five most common methods include exporting, licensing and franchising, partnering and strategic alliance, acquisition, and Greenfield venture. One of the major differences when it comes to franchising vs. International Business: The New Realities, 5e, Global Edition (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies. focal firm does everything for business and hands it over to customer after training. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances An international entry mode involving a contractual agreement between two. In the franchising packages trademarks, copyright, patents and other things often are included. Advantages. In franchise, a franchiser sells a property to the franchisee but controls over the procedures of the business. strategies. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. 30. Question 74. Homework Help. Foreign Direct Investment and Collaborative Ventures 408 15. Franchising is an advanced form of licensing in which the the franchisor allows the franchisee, the right to use an entire business system in exchange for compensation. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it. other contractual agreements and equity modes (wholly owned subsidiary or joint venture). 1. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract T/F, Exporting and foreign direct investing are two common types of contractual entry. strategic alliances. Licensing. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. , Licensing. 2 Understand licensing as an entry strategy. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. Arrangement in which an independent company is licensed to establish, develop, and manage the entire franchising network in its market and has the right to sub franchise to other franchisees, assuming the role of local franchisor. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. A strategic alliance is a collaborative agreement between two or more companies to pursue mutually beneficial objectives. A licensing agreement allows a foreign company to sell a company’s. focal firm does everything for business and hands it over to customer after training. International Business: The New Realities, 4e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies _____ 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. A modern approach to international business. The difference between a franchise contract and a licensing contract is that a. Licensing: An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. • Franchising vs licensing – Licensing of IPRs is an element of franchising – Licensing of IPRs is the means to reach the end • Goals of franchising – For the franchisor: geographically expand its busi ness without taking financial risks – For the franchisee: benefit from the brand, experi ence and know-how of the franchisor FranchisingSTRATEGY AND OPPORTUNITY ASSESSMENT FOR INTERNATIONAL BUSINESS; 11. Study Resources. Franchising. 6. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional. 70. Process. Ask AI New. Chapter 15. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. Study with Quizlet and memorize flashcards containing terms like contractual entry strategies in international business, intellectual property, intellectual property rights and more. 4. Many firms build biotech tags,. Securities law govern. An Introduction A. c. a. Typically, the franchise agreement is for ten years. Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. 11). In franchising, decision rights encompass the assignment of rights for use of system- and outlet-specific assets in contracts. Learn vocabulary, terms, and more with flashcards, games, and other study tools. 15. An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Lisanslama, Franchising ve diğer Sözleşme Stratejileri Learn with flashcards, games, and more — for free. Unique Aspects of Contractual Relationships. Licensing, Franchising and other Contractual Strategies. C) A local firm allows the focal firm to blend into the local market, attracting less. Study with Quizlet. Franchising. 2. the franchising and licensing as market entry mode in general and in hotel industry. 2 ABSTRACT Presently, companies wanting to engage in international trade have a wide pool of choices to choose from. Chapter 15 Licensing, Franchising and other Contractual Strategies Internatonal Business:Contractual entry strategies in international business. An organisation will need to determine their desired level of commitment, flexibility, control, presence and risk when going global, in order to choose the entry mode which best suits their situation. is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. Exporting falls within the broad umbrella of market entry strategies that include a range of approaches to build international markets for your business. Exporting is a low-risk strategy that businesses find attractive for several reasons. Revenues are usually more modest than with other entry strategies. Licensing, Franchising, and Other. B) They are more susceptible to volatility and risk compared to FDI. Learn faster with spaced repetition. C) There is no scope to operate an independent. fFranchising as an Entry Strategy. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. These contractual methods can be seen in many forms such as international licensing and franchising. Global Market Opportunity Assessment IV. 15. Cross-border exchanges in which the relationships between the focal firm and its foreign partner is governed by an explicit contract. 3Describe the advantages and disadvantages of licensing. True Franchising is a variation of licensing strategy in which there is a contract between the parent company franchiser and a franchisee that allows the franchisee to operate a business developed by the franchiser in return for all rights for operations. From a licensor standpoint, there are fewer risks in the selling and service of what is being. Licensing, franchising and other contractual strategies. 2 Exporting 7. Learn. Learn this differs between licensing and franchising and why general is not an alternative for franchising. Test. True/False . In this section, we will explore the traditional international-expansion entry modes. an advanced form of licensing in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation. docx from BUS MISC at Florida State University. ENTERING AND OPERATING IN INTERNATIONAL MARKETS; 13. g. Franchising and licensing both offer business opportunities with some of the work already done for you, but that doesn't mean they're exactly the same. What are Franchising? Franchising is an business agreement that includes the license is a trademark, of payment of a fee, and control over how the underlying franchises business has operated. 15. OTHER STRATEGIC ALLIANCES i. 3. An industrial design is intended to _____. The main reasons companies form strategic alliances are to gain access. Create flashcards for FREE and quiz yourself with an interactive flipper. _____ these are the items owned by a franchisee that has the same monetary value. -most often begun with export. Either way, the licensor gets a kickback—as a. Learn. According to Franchise Business Review, franchising fees typically range from $25,000-$50,000 on average. Licensing. Geb 3375 Introduction to International Business – Study Guide Exam 3_ Part1 1 Introduction to International Business Study Guide Exam 3 – Part 1 Chapter 16: Licensing, Franchising and other Contractual Strategies With this chapter we continued the “entry strategies” part we had interrupted for exam 2. A license is much more limited than a. they are governed by a contract that provides the focal firm with a moderate level of control over the foreign partner 2. and win! Microsoft Volume. In some cases, it’s either for five years or can be for 20 years. Study Resources. Flashcards; Learn; Test;Exporting. What are unique aspect of contractual relationship (5) 1. Strategic Management Chapter 7. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. Exporting, joint ventures, direct investment, franchising, licensing, and various other forms of strategic alliance. skhaira2118 Terms in this set (26) contractual entry strategies in IB cross-border exchanges in which the relationship between the focal firm & its foreign partner is. b. contractor supplies managerial know how. In licensing, the licensor has limited control over the operations of the licensee, whereas franchising involves extensive control and support provided by the franchisor. Licensing term can be defined as “The method of operating in other country wherein a Firm of one country agrees to permit a company in another country to use the manufacturing, Processing, Trademark & other skill provided by the Licensor”. 6 Understand other contractual entry strategies. import/export, licensing c. It’s a legally binding document that spells out—in great detail— the integrated touch points of running the business from the franchisor and franchisee point of view. Disadvantages of franchising to the franchisee. Type of Entry. Exporting 2. In this chapter, you will learn about: Contractual entry strategies Licensing as an entry strategy Advantages and disadvantages of licensing Franchising as an entry strategy. distributing or retailing products that are traditionally manufactured by the franchisor. With the export strategy the marginal cost of firm E is higher due to. Importing involves purchasing products from other countries and reselling them in one’s own. provides technical specifications to a subcontractor or local manufacturer. An MNC may move into that mode voluntarily (to test the waters, so to speak) or for purely defensive reasons (to prevent a competitor from entering the market or to preserve sales that otherwise would be lost because of a. Verified Answer for the question: [Solved] Which of the following is an example of intellectual property? A) systems of measurement B) McDonald's golden arches C) an unpublished book D) a phone directory. 15. Franchising is governed by an elaborate agreement specifying the responsibilities and duties of both the parties involved. Solved . Greenfield Strategy v. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. View Test Prep - licensing and franchising from ECONOMICS 12 at Xavier Institute Of Management & Research. Licensees "rent" the brand from the owner, but are then expected to use their own expertise, capabilities and resources to innovate, produce, market and sell the. Franchising. master franchise. Franchising; Meaning: This is a contractual agreement in which one firm gets access to another firm’s patent, technology and other things in exchange for money. Solved . trading bloc c. Franchising is a business model where the franchisor extends business know-how, intellectual rights and the right to operate in the name of a brand for consideration (usually in the form of fees and royalties) to the franchisee. When it comes to retail entrepreneurship, there are several ways to open a. Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) _____ 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. if the franchisor has already achieved considerable success in franchising in its domestic market. Licensing, Franchising and other Contractual Strategies P a g e 1 | 10 P a g e 2 | 10 Executive Summary The report discusses international modes • Compared to licensing, franchising is usually a much more stable, long-term entry strategy. agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a. 2. Table 7. 1. patent. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. thecashchicken. cross border interaction between focal firm and foreign firm governed by a contract. License 101 Where lives Entering?. Learn. b. 15 ~ Licensing, Franchising, and Other Contractual Strategies. Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. nontariff barrier d. U. Chapter 16 - Licensing, Franchising, and Other Contractual Strategies. Discover. External: Operating Enviornment. Licensing is a legal process in which one firm pays to use or distribute another firm's resources. intellectual property. Created by. " Early market entry is generally considered a competitive. -the amount of equity required affects the risk,return, and control that it will have in. Cooperative strategies refer to any type of agreement between two or more firms, contractual or otherwise, involving mutual forbearance towards one or more (typically not identical) goals by providing capital, knowledge, technology, managerial talent, and/or other valuable assets under the purview of said firms (Anand & Khanna, 2000; Gulati, 1998). 5Explain the advantages and disadvantages of franchising. 15. Can be pursued independently or in conjunction with other entry strategies. Cavusgil, 3edition, Licensing Franchising and Other Contractual Strategies, Licensing, Franchising, Franchise, Chapter16. There are two major types of market entry modes: equity and non-equity. They provide dynamic, flexible choice. Browse With TopicA licensing agreement is a contract between two parties (the licensor and licensee) in which the licensor grants the licensee the right to use the brand name, trademark, patented technology, or ability to produce and sell goods owned by the licensor. Outline the challenges facing professional service firms when they internationalize. Keep in mind, however, this is strictly the franchise fee and doesn’t include other startup costs to open the. Brand owners lease their patents, software, or characters to other companies. Exporting and foreign direct investing are two common types of contractual entry strategies. Learn faster. Franchising VS Licensing. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual Property, Intellectual Property Rights and more. Intellectual property describes. . Ctrl+k Search questions by imageRetail franchising is the method of opening a single store under the umbrella of an established name, branding, trademark, and product line. There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7. 4. On the flip side, potential for revenue growth is more limited because the parent company will only earn a percentage of the earnings from each new store. Franchising is governed. Leasing is Especially Beneficial to _____ Question 80. The most use contractual entry modes are Licensing, Franchising and Turnkey projects which is going to be explained below. 4. As a disclosure, my company is a franchise providing. licensing team. Verified Answer for the question: [Solved] _____ 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. 3. A) Nickelodeon B) The Walt Disney Company C) Mattel D) Major League Baseball Services Discover Topics Ask a questionVerified Answer for the question: [Solved] To minimize the complexity of franchising, focal firms must ________. In franchising, the franchisor licenses the. Provide dynamic, flexible choice. the advantages of franchising as an entry mode to global expansion are similar to the disadvantages of licensing false the least preferred strategy when a company's competitive advantage is based on technology is the wholly owned subsidiaryA franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. RenaeBoleyn. Establishing joint ventures with a host-country firm 6. Several companies get patent their technology and other products that they don’t want anyone else to use without their consent. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. Two common types of contractual entry strategies are licensing and franchising. Chapter 16 - Licensing, Franchising and other Contractual Strategies. A franchisor may not enforce a terminable-at-will contract clause in a jurisdiction that requires good cause to terminate a franchise agreement—even if the franchisee’s attorney actively negotiated the contract and the franchisee is given the sameLearn Licensing, Franchising and other contractual strategies with free interactive flashcards. Match. A) markets competing products for significantly lower prices B) uses the licensing asset to create products of poor quality C) refuses to pay the agreed upon royalties to the licensor D) does not guarantee future expansion in the. Similarly, explicit contracts define franchising relationships. Quiz 15: Licensing, Franchising, and Other Contractual Strategies. When considering a venture in international markets, there are some significant tactical and strategic decisions to be effected. Detailed contracts and ongoing monitoring are equally as essential to the success of this international business strategy. • Contractual entry strategies (franchising, licensing, management. Direct exporting. foreign direct investment. Test. Typically, franchise agreements require a longer-term commitment from both parties involved, usually ten years or more, while management contracts tend to be shorter-term agreements, usually ranging from one to five years. Advantages. While franchising involves a more comprehensive relationship in which the franchisor provides ongoing support and guidance to the franchisee in addition to granting the right to use its business model and brand. Franchising: Arrangement in which the firm allows u000banother the right to use an entire business system in u000bexchange for fees, royalties or. accepting a franchise for dealing with the traditional products. Chapter 14 Licensing, Franchising, and other Contractual Strategies Opening: Harry Potter; The Magic of Licensing386 • Warner Brothers has exclusive licensing rights to the Potter series • Warner allows companies to use Potter realted images on manufactured products in exchange for royalty • Licensing process is self generating o Each new. The History of Franchising* I. It described the development of Chinese hotel industry at the end. S. Exporting. A) the licensee B) patent. The Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. Licensing A contractual agreement whereby one company (the. Licensing/franchising also opens the doors. A license is “a contractually transferred right to use a legally protected or unprotected in vention in exchange for a fee or another type of compensation” (Mordhorst 1994, p. Low development cost and low risk in overseas expansion are advantages of this entry mode. While deciding between franchising vs. Learn the differences between licensing and franchising and why licensing is not an optional to franchising. gives the owner the exclusive right to reproduce art, music, literature, software, and other such works, as well as prepare derivative works, or distribute copies know how licensing Involves a contract in which the focal firm provides technological or management knowledge about how to design, manufacture, or deliver a product or a service. Licensing is expensive and it requires process like agreement & It is similar as Franchise Operation. Read other and watch their success stories!. It. Under an international franchise agreement, a company (the franchiser) grants a foreign company (the franchisee) the right to use its brand name and to sell its products or services. Franchising makes up 10% of the U. In 1974 the company started franchising in the USA and later it was uses in order to expand globally. Match. • Describe. An Industrial Design is Intended to _____ Question 2. Franchising 5. Question 14. The globalization of franchising took off in the 1990s as a result of push factors (domestic. A licensing agreement is generally less complicated and easier to finalize than a franchise agreement. c. An industrial design is intended to ________. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. This strategy is based on franchising, the market entry mode, Subway used in order to enter foreign markets. 1 Explain contractual entry strategies. in exchange for royalties, license fees, or some other form of compensation Patent Trade secret Brand name Product formulations. B)It is an ownership-based international business activity. - Firms that use licensing often can avoid expensive entry as is usually required in FDI. Exporting is a method of expansion where. 3 Licensing 7. The most common methods firms join international trade are through contractual entry strategies such as direct exporting, franchising, licensing, management contract, contract manufacturing, buying a company, and joint ventures. International Business: The New Realities, 5e (Cavusgil) Chapter 15 Licensing, Franchising, and Other Contractual Strategies 1) A _____ 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. Licensing is giving legal rights to in-market parties to use your company’s name and other intellectual property. Create flashcards for FREE and quiz yourself with an interactive flipper. Test. True/False . For example, Ranbaxy has licensing arrangement in countries like Indonesia and Jordan. firm. Key challenges faced by the franchisee is the decreased likelihood of operating an independent business. Franchise: A franchise is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchiser) proprietary knowledge, processes, and trademarks in. com Licensing • A company (licensor) grants rights to intangible property to another company (licensee). 1. Terms in this set (21) Contractual entry strategies in international business. In existing literature, most strategies are appraised as alternatives to exporting, or as alternatives to green-field FDI. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. •Franchising is an advanced form of licensing in which the focal firm, the franchisor,. After few years, once the know- how is transferred, there is a risk that the foreign firm may begin to act on its own and the international firm may therefore. Licensing, Franchising, and Other Contractual Strategies. Turnkey Project b. Microfranchises: Franchises operated by one or two people. Test. 99/year Quiz 15: Licensing, Franchising, and Other Contractual Strategies. fAdvantages & Disadvantages of. 16: Licensing, Franchising, and Other Contractual Strategies unique aspects of. Licensees also enjoy lowered risk because they're usually entering the marketplace with a known quantity and a built-in customer base. Essentially, it entails selling the rights to conduct a proprietary business to another individual, usually in a specified geographic region. Study with Quizlet and memorize flashcards containing terms like In the context of international trade restrictions, offering less-favorable exchange rates to certain importers is a(n) _____. Skip until Main Content. Exporting. Chapter 15: Licensing, Franchising, and Other Contractual Strategies Key Elements Contractual Entry strategies in Franchising and licensing both offer business opportunities with some of the work already done for you, but that doesn't mean they're exactly the same. Licensing is a contractual arrangement where a company grants permission to another party to use its intellectual property or brand. A) Duty B) Residual C) Royalty D) Tariff Answer: CLicensing An arrangement in which the owner of intellectual property grants another firm the right to use that property for a specified period of time in exchange for royalties or other compensation. the firm enters a foreign market before other foreign firms - this is a proactive strategy. Study with Quizlet and memorize flashcards containing terms like 5 Methods for entering the global market place from least risky/return to most risky/return, Exporting, Licensing and Franchising and more. University High School High School Regions. Contractual entry strategies 2. 6 Joint Ventures Chapter 8. Typically include the exchange of intangibles and services. Contractual Entry Strategies Contractual entry strategies Two common types of contractual entry strategies are licensing andLicensing. Ideas or works created by firms or individuals, such asintellectual property grants another firm the right to usethat property for a specified period of time in exchangeView Homework Help - Week 12. View final ch 15 man3600. On the most basic level, the difference between a franchise and a license is the amount of support you can expect to receive. 15. A franchised. by Cavusgil, Knight & Riesenberger. 8 billion. Exporting, joint ventures, direct investment, licensing, franchising, and other forms of an alliance is duly considered as market entry types. B) The franchisor holds much power, including superior bargaining power. 4 illustrates the nature of the franchising agreement A typical. Licensing Agreement: A licensing agreement refers to a written agreement entered into by the contractual owner of a property or activity giving permission to another to use that property or engage. They are governed by a contract that provides the focal firm a moderate level of control over the foreign partner. 2. True/False . , Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in. e. Human Resource Management. Study with Quizlet and memorize flashcards containing terms like Licensing, franchising and other contractual strategies are considered _____ control strategies, Contractual Relationships between a focal firm and a foreign partner are, Intellectual Property refers to. 2. Flashcards. Click the card to flip 👆. Franchising, on the other hand, is a business expansion model where a franchisor grants the rights. Essentially, you need to decide whether you want to buy a franchise or own your own business while pursuing licensing opportunities. . d. Bashar Hassan. It is a form of distribution and marketing in which the company gives the other firm the right to do business in their protected way (Bradley 2005:246). • Understand infringement of intellectual property Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract.