Describe foreign licensing and foreign franchising. Explain their benefits and challenges with examples.
What will be an ideal response?
Answers will vary. Foreign licensing involves a domestic firm granting a foreign firm the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area. The company that offers the rights, or the licensor, receives a fee from the company that buys the rights, or the licensee. This approach allows firms to expand into foreign markets with little or no investment, and it also helps circumvent government restrictions on importing in closed markets. But maintaining control of licensees can be a significant challenge. Licensors also run the risk that unethical licensees may become their competitors, using information that they gained from the licensing agreement. Foreign licensing is especially common in the food and beverage industry. The most high-profile examples include Coke and Pepsi, which grant licenses to foreign bottlers all over the world.Foreign franchising is a specialized type of licensing. A firm that expands through foreign franchising, called a franchisor, offers other businesses, or franchisees, the right to produce and market its products if the franchisee agrees to specific operating requirements-a complete package of how to do business. Franchisors also often offer their franchisees management guidance, marketing support, and even financing. In return, franchisees pay both a start-up fee and an ongoing percentage of sales to the franchisor. One key difference between franchising and licensing is that franchisees assume the identity of the franchisor. A McDonald's franchise in Paris, for instance, is clearly a McDonald's, not, say, a Pierre's Baguette outlet that also carries McDonald's products.
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A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT?
A. The PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity. B. The periodic interest rate is greater than 3%. C. The periodic rate is less than 3%. D. The present value would be greater if the lump sum were discounted back for more periods. E. The present value of the $1,000 would be larger if interest were compounded monthly rather than semiannually.
Gross national product (GNP) is the total market value of all final goods and services produced in a country for a given time period
Indicate whether the statement is true or false a. True b. False
Your textbook identifies four characteristics of mass communication – one is that it primarily involves one way communication. Which of the following is NOT one of the other three?
a. It usually involves communication to a large, anonymous and heterogeneous audience b. It is usually transmitted through channels that work fast c. Senders are usually big organizations rather than individuals d. It is easily personalized to ensure all the audience perceive the message as important
Visit your favorite local restaurant (fast-food or otherwise) and draw a basic process flowchart for the food ordering, preparation, and delivery. Are there portions of these processes that do not appear to add value to the process? How could these be eliminated or reduced?
What will be an ideal response?