MAN3600 Exam 4 questions with verified
answers
Contractual Agreement - correct answer ✔✔cross-border exchanges in which the relationship between
the focal firm and the foreign partner is governed by an explicit contract
Intellectual Property - correct answer ✔✔ideas or works created by firms or individuals, such as patents,
trademarks, and copyrights
- includes such knowledge-based assets of the firm or individual as industrial designs, trade secrets,
inventions, works of art, literature, and other "creations of the mind"
Licensing (Contractual) - correct answer ✔✔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 - correct answer ✔✔arrangement in which the firm allows another the right to use an entire
business system in exchange for fees, royalties, or other compensation
Royalties - correct answer ✔✔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
Aspects of Contractual Relationships - correct answer ✔✔governed by a contract that provides that focal
firm a moderate level of control over the foreign partner
- control reflects the ability of the firm to influence he decisions, operations, and strategic resources of a
foreign venture
typically involve exchange of intangibles (intellectual property) and services
-examples: technical assistance, know-how, and trademarks
,can be pursued independently or with other foreign market entry strategies, such as FDI and exporting
provide dynamic, flexible choice, where firms may use contractual agreements to make their initial entry
in foreign markets
- as conditions evolve, they switch to another entry strategy (FDI)
can reduce perceptions of the firm as a foreign enterprise
- a contractual relationship with a local firm facilitates blending into the local market
generate a consistent earnings from foreign operations (compared with FDI) as contractual arrangements
are less susceptible to volatility and risk
Patent - correct answer ✔✔provides the right to prevent others from using an invention for a fixed
period
- granted to anyone who invents a new process, product, or useful improvement
Trademark - correct answer ✔✔a distinctive design or symbol that identifies a product or service
e.g., Nike's swoosh
Copyright - correct answer ✔✔protects original works of authorship (typically covers works of music, art,
literature, movies or software
Licensing - correct answer ✔✔a licensing agreement specifies the nature of the relationship between
the licensor (owner of intellectual property) and the licensee (the user)
examples:
- Intel licensed the right to a new process for manufacturing chips to a firm in Germany
- Warner licenses images from the Harry Potter books and movies to companies worldwide
, - Disney licenses the right to use its cartoon characters in producing shirts and hats to clothing
manufacturers in Asia
Licensing Deals - correct answer ✔✔- in a typical deal, the licensee pays the licensor a fixed amount
upfront and an ongoing royalty (usually 2-5%) on gross sales generated from using the licensed asset
- the fixed amount covers the licensor's initial costs of transferring the licensed asset to the licensee,
including training, engineering, or adaption
- certain types of licensable assets, such as copyrights and trademarks, have much lower transfer costs
Licensor Provides a Combination of... - correct answer ✔✔1.) intellectual property (patent, trademark,
design, copyright, or know-how)
2.) supporting products (parts, companies, raw materials, etc.)
Licensee Compensates with a Combination of... - correct answer ✔✔1.) lump-sum payment
2.) down-payment plus royalty
3.) products
4.) know-how
5.) cross-licensing
Planters and Sunkist - correct answer ✔✔are owner by U.S. firms and sold in Britain and Japan via
licensing agreements
Coca-Cola - correct answer ✔✔has a licensing agreement to distribute Evian bottled water in the U.S. on
behalf of the brand's owner, French company Danone
The 120 Largest Multinational Food Companies - correct answer ✔✔revealed that at least half are
involved in some form of international product licensing
answers
Contractual Agreement - correct answer ✔✔cross-border exchanges in which the relationship between
the focal firm and the foreign partner is governed by an explicit contract
Intellectual Property - correct answer ✔✔ideas or works created by firms or individuals, such as patents,
trademarks, and copyrights
- includes such knowledge-based assets of the firm or individual as industrial designs, trade secrets,
inventions, works of art, literature, and other "creations of the mind"
Licensing (Contractual) - correct answer ✔✔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 - correct answer ✔✔arrangement in which the firm allows another the right to use an entire
business system in exchange for fees, royalties, or other compensation
Royalties - correct answer ✔✔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
Aspects of Contractual Relationships - correct answer ✔✔governed by a contract that provides that focal
firm a moderate level of control over the foreign partner
- control reflects the ability of the firm to influence he decisions, operations, and strategic resources of a
foreign venture
typically involve exchange of intangibles (intellectual property) and services
-examples: technical assistance, know-how, and trademarks
,can be pursued independently or with other foreign market entry strategies, such as FDI and exporting
provide dynamic, flexible choice, where firms may use contractual agreements to make their initial entry
in foreign markets
- as conditions evolve, they switch to another entry strategy (FDI)
can reduce perceptions of the firm as a foreign enterprise
- a contractual relationship with a local firm facilitates blending into the local market
generate a consistent earnings from foreign operations (compared with FDI) as contractual arrangements
are less susceptible to volatility and risk
Patent - correct answer ✔✔provides the right to prevent others from using an invention for a fixed
period
- granted to anyone who invents a new process, product, or useful improvement
Trademark - correct answer ✔✔a distinctive design or symbol that identifies a product or service
e.g., Nike's swoosh
Copyright - correct answer ✔✔protects original works of authorship (typically covers works of music, art,
literature, movies or software
Licensing - correct answer ✔✔a licensing agreement specifies the nature of the relationship between
the licensor (owner of intellectual property) and the licensee (the user)
examples:
- Intel licensed the right to a new process for manufacturing chips to a firm in Germany
- Warner licenses images from the Harry Potter books and movies to companies worldwide
, - Disney licenses the right to use its cartoon characters in producing shirts and hats to clothing
manufacturers in Asia
Licensing Deals - correct answer ✔✔- in a typical deal, the licensee pays the licensor a fixed amount
upfront and an ongoing royalty (usually 2-5%) on gross sales generated from using the licensed asset
- the fixed amount covers the licensor's initial costs of transferring the licensed asset to the licensee,
including training, engineering, or adaption
- certain types of licensable assets, such as copyrights and trademarks, have much lower transfer costs
Licensor Provides a Combination of... - correct answer ✔✔1.) intellectual property (patent, trademark,
design, copyright, or know-how)
2.) supporting products (parts, companies, raw materials, etc.)
Licensee Compensates with a Combination of... - correct answer ✔✔1.) lump-sum payment
2.) down-payment plus royalty
3.) products
4.) know-how
5.) cross-licensing
Planters and Sunkist - correct answer ✔✔are owner by U.S. firms and sold in Britain and Japan via
licensing agreements
Coca-Cola - correct answer ✔✔has a licensing agreement to distribute Evian bottled water in the U.S. on
behalf of the brand's owner, French company Danone
The 120 Largest Multinational Food Companies - correct answer ✔✔revealed that at least half are
involved in some form of international product licensing
