MAN 3600 Unit 10 final exam
Study online at https://quizlet.com/_e66zug
1. Contractual entry strategies in interna- Cross-border exchanges in which the rela-
tional business: tionship between the focal firm and its foreign
partner is governed by an explicit contract.
2. Intellectual property: Ideas or works created by firms or individuals,
such as patents, trademarks, and copyrights.
Includes such knowledge-based assets of the
firm or individuals as industrial designs, trade
secrets,
inventions, works of art, literature, and other
"creations of the mind".
3. Licensing: An arrangement in which the owner
of intellectual property grants another firm
the
right to use that property for a specified peri-
od
of time in exchange for royalties or other
compensation.
4. Franchising: Arrangement in which the firm
allows another the right to use an entire
business system in exchange for fees, royal-
ties
or other compensation.
5. Royalty: A fee paid periodically to compensate a
licensor for the temporary use of its intellec-
tual
property, often based on a percentage of
gross sales
generated from the use of the licensed asset.
, MAN 3600 Unit 10 final exam
Study online at https://quizlet.com/_e66zug
6. Examples of Contractual Relationships • Bristol-Myers Squibb entered a cross-li-
censing
agreement with IMCOR Pharmaceutical Co.
to
produce medications for ultrasound patents.
Pharmaceutical
firms enter countless such cross-licensing
agreements.
• Japanese company Sanrio has licensed
"Hello Kitty"
to many manufacturers of cosmetics, food,
calendars,
toys, clothing, and numerous other products.
• 7-Eleven has some 26,000 stores in 18
countries.
While the parent firm in Japan owns most of
the
stores, several thousand in Canada, Mexico,
and the
U.S. operate via licensing or franchising
agreements.
7. Unique Aspects of Contractual Relation- Governed by a contract that provides the fo-
ship cal
firm a moderate level of control over the for-
eign
partner.
8. Control reflects the ability of the firm to... influence the decisions, operations, and
strategic resources of a foreign venture.
, MAN 3600 Unit 10 final exam
Study online at https://quizlet.com/_e66zug
9. contracts typically involve exchange of intangibles
(intellectual property) and services. Exam-
ples
include technical assistance, know-how, and
trademarks.
• Can be pursued independently or with oth-
er
foreign market entry strategies, such as FDI
and exporting
10. Contractual Relationships Provide dynamic, flexible choice, where firms
may use contractual agreements to make
their
initial entry in foreign markets. Then, as
conditions evolve, they switch to another entry
strategy, such as FDI.
• Can reduce perceptions of the firm as a
foreign enterprises
• Generate a consistent earnings from for-
eign
operations
11. patent provides the right to prevent
others from using an invention for a fixed
period. It is granted to anyone who
invents a new process, product, or useful
improvement.
12. trademark
Study online at https://quizlet.com/_e66zug
1. Contractual entry strategies in interna- Cross-border exchanges in which the rela-
tional business: tionship between the focal firm and its foreign
partner is governed by an explicit contract.
2. Intellectual property: Ideas or works created by firms or individuals,
such as patents, trademarks, and copyrights.
Includes such knowledge-based assets of the
firm or individuals as industrial designs, trade
secrets,
inventions, works of art, literature, and other
"creations of the mind".
3. Licensing: An arrangement in which the owner
of intellectual property grants another firm
the
right to use that property for a specified peri-
od
of time in exchange for royalties or other
compensation.
4. Franchising: Arrangement in which the firm
allows another the right to use an entire
business system in exchange for fees, royal-
ties
or other compensation.
5. Royalty: A fee paid periodically to compensate a
licensor for the temporary use of its intellec-
tual
property, often based on a percentage of
gross sales
generated from the use of the licensed asset.
, MAN 3600 Unit 10 final exam
Study online at https://quizlet.com/_e66zug
6. Examples of Contractual Relationships • Bristol-Myers Squibb entered a cross-li-
censing
agreement with IMCOR Pharmaceutical Co.
to
produce medications for ultrasound patents.
Pharmaceutical
firms enter countless such cross-licensing
agreements.
• Japanese company Sanrio has licensed
"Hello Kitty"
to many manufacturers of cosmetics, food,
calendars,
toys, clothing, and numerous other products.
• 7-Eleven has some 26,000 stores in 18
countries.
While the parent firm in Japan owns most of
the
stores, several thousand in Canada, Mexico,
and the
U.S. operate via licensing or franchising
agreements.
7. Unique Aspects of Contractual Relation- Governed by a contract that provides the fo-
ship cal
firm a moderate level of control over the for-
eign
partner.
8. Control reflects the ability of the firm to... influence the decisions, operations, and
strategic resources of a foreign venture.
, MAN 3600 Unit 10 final exam
Study online at https://quizlet.com/_e66zug
9. contracts typically involve exchange of intangibles
(intellectual property) and services. Exam-
ples
include technical assistance, know-how, and
trademarks.
• Can be pursued independently or with oth-
er
foreign market entry strategies, such as FDI
and exporting
10. Contractual Relationships Provide dynamic, flexible choice, where firms
may use contractual agreements to make
their
initial entry in foreign markets. Then, as
conditions evolve, they switch to another entry
strategy, such as FDI.
• Can reduce perceptions of the firm as a
foreign enterprises
• Generate a consistent earnings from for-
eign
operations
11. patent provides the right to prevent
others from using an invention for a fixed
period. It is granted to anyone who
invents a new process, product, or useful
improvement.
12. trademark
