Options for CONTRACTS include co-marketing, R&D contracts, turnkey project, strategic supplier/distributor, licensing/franchising. Licensing: Licensing is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor". 6 Understand other contractual entry strategies. 15. trademark. Type of Entry. Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. Question 2. 1. In deciding which method to adopt, it is important that a firm evaluate each entry mode’s. Bashar Hassan. C) licensing contract covers more aspects of operations. D) strategic decision making. Terms in this set (7)Study with Quizlet and memorize flashcards containing terms like when it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?, export assistance centers provide hands-on expiring assistance and trade-finance support for ____ and _____ -sized businesses. True or false: Transportation costs would have an effect on which entry mode a company uses. contractor supplies managerial know how. 3. fFranchising as an Entry Strategy. 1 Advantages and Disadvantages of Di erent Modes of Internationalization. Low control, low local knowledge, potential negative environmental impact of transportation. Unique aspects of contractual relationships They are governed by a contract that provides the focal firm with moderate level of control over the foreign. 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. contractor supplies managerial know how. reduce local perceptions of the focal firm as a foreign enterprise Study with Quizlet and memorize flashcards containing terms like 1. Other Contractual Entry Strategies Chapter 15 Contractual Entry Strategies There are two common types of contractual entry strategies; 1. Accounting for 12% to 13% of British trade, these methods of earning money abroad have become more popular in recent years. Importing involves purchasing products from other countries and reselling them in one’s own. A) franchise contract is more specific and usually longer in duration. Management Service Contracts A management service contract is a long-term agreement, of up to ten years or even longer, whereby the legal owners of the property and real estate enter into a. It is where a person (franchisor) who has developed a certain way of doing a business gives another. _Lic_Update (2). Microfranchises: Franchises operated by one or two people. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances An international entry mode involving a contractual agreement between two. Licensing, Franchising, and Other Contractual Strategies Learning Objectives • Explain contractual entry strategies. Less control, licensee may become a competitor, legal and regulatory environment (IP and contract law) must be sound: Partnering and Strategic Alliance: Shared costs reduce investment needed, reduced risk, seen as local entity: Higher cost than exporting, licensing, or franchising; integration problems between two corporate. Licensing, Franchising, and Other. 7. In 1974 the company started franchising in the USA and later it was uses in order to expand globally. Leasing is Especially Beneficial to _____ Question 80. • Understand licensing as an entry strategy. Exporting is a method of expansion where. 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 subsidiaryChapter 6: Strategic Alliances. Contract manufacturing is when a firm enters into a contract with local manufacturers in foreign countries to get goods produced as per its specifications. Question 4. 1. Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest. _____ these are the items owned by a franchisee that has the same monetary value. Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. 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. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. 7 Using Demographics to Guide Global Marketing Strategy 6. Voluntary agreements between firms. Contract duration and renewal 2. Two common types of contractual entry strategies are licensing and franchising. Exhibit 15. 15. Which mode is to be used in which situation 5. 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. Subscribe to newsletters Subscribe: $29. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. True. Created by. Licensing offers more controlBy expanding into new territories and regions via franchising, your company’s services are made available to a wider audience, both diversifying and localizing your reach. nontariff barrier d. Verified Answer for the question: [Solved] Which of the following is an advantage of franchising to the franchisee? A) reduced expenses as the franchisor provides supplies, equipment, and products B) Minimum initial investments or royalty payments are applicable. Reasons for Licensing:Get Quality Help. View MIB_8_MSLewandowska_2018_Fra. OTHER CONTRACTUAL ENTRY STRATEGIES -Under build-operate-transfer (BOT) arrangements, the firm contracts to build a major facility, such as a power plant, which it operates for a period of years and then transfers to the host-country government or other public entity. Licensing: Licensing offers several benefits for both the licensor and the licensee. accepting a business model for doing a business in a traditional manner. licensing, Strategic alliancesA detailed list of issues pertaining to termination and renewal terms The advantages and disadvantages of franchising are similar to those of licensing. Franchise Agreements are the core operating principles that define the relationship between the franchisor and the franchisee. 15. 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. Mode Characteristics Advantages Disadvantages. 3. Studying is made a lot easier and more fun with our online flashcards. A licensing agreement allows a foreign company to sell a company’s. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. Study with Quizlet and memorize flashcards containing terms like Test Your Comprehension, 15-8. In addition to the standard license process, a company will assist in establishing the business with the design, equipment, organization, and marketing. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. Choose from 29 different sets of Licensing, Franchising and other contractual strategies flashcards on Quizlet. Test. Licensing,. They typically include the exchange of intangibles and services. View BUS 417 . 3. The franchisee is. 14). Verified Answer for the question: [Solved] Which of the following is TRUE about cross-border contractual relationships? A) It is a more visible strategy than FDI and draws a lot of criticism from the local market. Study with Quizlet and memorize flashcards containing terms like Contractual Entry Strategies in International Business, Intellectual Property, Intellectual Property Rights and more. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Correct Answer: Access For Free . Your matched tutor provides personalized help according to your question details. 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. Try it free3. 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. In Licensing agreement and franchise, an overseas-based business will pay you a royalty or commission to use your. 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. Created by. All of the above. c. A number of foreign market entry modes exist, including: exporting, licensing, franchising, joint venture and wholly owned subsidiary. 4 ways to enter foreign markets. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. Uploaded By ebrarpatriot. 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,. Ensuring ongoing competitive advantage. 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. A) advanced economies B) economies with high PPP C) First World countriesthe statutory protections of franchise laws even if it wants to on advice of legal counsel. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. C) The licensee cannot cancel the contract with the. A) should bribe government officials to ensure protection of intellectual property B) should register patents and copyrights with local governments C) should keep information about intellectual property confidential from all franchisees in. CONTRACTUAL ENTRY STRATEGIES Two common types of contractual entry strategies are licensing and franchising. Business model: The first difference is in the business model. 4 Understand franchising as an entry strategy. Study with Quizlet and memorize flashcards containing terms like What does a contractual entry strategy in IB mean, Give forms of IP, What are the types of contractual relationships and more. 30. WEEK 12 - LICENSING, FRANCHISING AND OTHER CONTRACTUAL STRATEGIES. Mode Characteristics Advantages Disadvantages. - contract provides focal firm with moderate level of control over foreign partner. Franchising is governed. 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 subfranchise to other franchisees, assuming the role of local franchisor. Aspect Franchising Licensing; Definition: Franchising is a business model where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand, systems, and support in exchange for fees and royalties. equity mode of entry into foreign markets limited to a contractual agreement. CONTRACTUAL STRATEGIC ALLIANCES i. Learn. . Build trust, build interpersonal relationships, get to know each other, build an informal network between the 2 firms managers. 2. , Exporting and foreign direct investing are two common types of contractual entry strategies. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, intellectual property, intellectual property rights and more. a. Total views 38. 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. For example, Ranbaxy has licensing arrangement in countries like Indonesia and Jordan. Test. Product Adaption. Franchising: more complex form of licensing in which the franchisor allows a franchisee the right to use its entire business system in exchange for compensation. Intellectual Property rights – legal claims that protect proprietary assets of firms and indivduals from unauthorized use by other parties III. What are unique aspect of contractual relationship (5) 1. Test. D. 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. a. In this section, we will explore the traditional international-expansion entry modes. Protecting Intellectual Property. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it. Licensing ii. Learn. AI Homework Help. Intellectual property rights (IPRs) legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties, monopoly advantage for specified period of time. My Library. • Describe. , Licensing. Quiz 15: Licensing, Franchising, and Other Contractual Strategies Solved Professional Service Firms, Such as PriceWaterhouseCooper, Often Enter Large InternationalLike international licensing, international franchising has certain advantages and disadvantages. 13 8. Similar to a licensing agreement, under a franchising agreement, the multinational firm grants rights on its intangible property, like technology or a brand name, to a foreign company for a specified period of time and receives a royalty in return. 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 (Table 7. Similar to exporting, licensing is an easy way for a company to enter an international market quickly and without the need for laying out much capital. Switzerland is a country that has revaluated its currency—this does not happen often. g. 4. 5. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. ) The many technological barriers to doing business globally. Match. A. Learn the distinguishing between licensing and franchising and why licensing is not certain alternative on franchising. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract Intellectual property: ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical. The Five Common International-Expansion Entry Modes. Provide dynamic, flexible choice. The difference is that the franchiser provides a bundle of services and products to. Process. Trademark LicensingCompanies which want to establish a retail presence in an overseas market with minimal risk, the licensing and franchising strategy allows another person or business assume the risk on behalf of the company. S. e. A license allows the licensee to use, make and sell an idea, design, name, or logo for a fee. Brand owners lease their patents, software, or characters to other companies. contract manufacturing. strategic alliances. licensing is the limitation placed on licensing agreements. gives an inventor the right to prevent others from using or selling an invention for a fixed period-typically up to 20 years. The impact of strategy considerations can most easily be illustrated in a Cournot duopoly setting as displayed in Fig. embargo, In the context of various strategies for reaching global markets, which of the following strategies. 4 Franchising 7. entered China by giving a retail chain in China the authority to use Saks Fifth Avenue name for a flagship department store in Shanghai. B. Study Licensing, franchising and other contractual strategies (Key Terms) flashcards from Lewis Mellor's class online, or in Brainscape's iPhone or Android app. Entering. Typically include the exchange of intangibles and services. Learn. 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. strategies. 2. wholly owned subsidiaries. Learn vocabulary, terms, and more with flashcards, games, and other study tools. AFM 333 – Ch 16 Licensing, Franchising, and Other Contractual Strategies. 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 Inbound licenses, Outbound licensing, Contractual entry strategies in international business and more. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit. other contractual agreements and equity modes (wholly owned subsidiary or joint venture). C) There is no scope to operate an independent. 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. According to Franchise Business Review, franchising fees typically range from $25,000-$50,000 on average. c. In franchise, a franchiser sells a property to the franchisee but controls over the procedures of the business. Similarly, explicit contracts define franchising relationships. Flashcards. doc from ADMN 05 at The Islamic University of Gaza. There are six basic options available: (1) exporting, (2) licensing, (3) franchising, (4) creating a joint venture or strategic alliance (5) acquisition/creating a wholly owned subsidiary, and (6) greenfield/wholly owned subsidiary (Table 9. Licensing vs Franchising The primary difference between a franchisee and a licensee is that franchisees can expect to have a much closer. Disadvantages of franchising to the franchisee. Solved . Provide dynamic, flexible choice. Verified Answer for the question: [Solved] In a licensing agreement, ________ is responsible for local sales. Flashcards. B) An Indian automobile manufacturing company, buys engines from a Japanese manufacturer for its. licensing. A franchise is a business model in which a business owner licenses their business to another individual or organization. make it difficult for later entrants to win business. Licensing, on the other hand, is a form of private contract between parties and. Typically include the exchange of intangibles and services. Co-marketing. 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. Created by. Contractual entry strategies 2. Discover. These contractual methods can be seen in many forms such as international licensing and franchising. Franchising is a variation of licensing strategy in which there is a contract between the parent company franchiser. Contractual Entry Strategies. A franchised. docx from INT- 113 at Southern New Hampshire University. 1 Explain contractual entry strategies. they typically include the exchange of intangibles and services 3. 4. Two Types of Contractual Entry Strategies • 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: An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other. The History of Franchising* I. 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. contract manufacturing. 3. Franchising, on the other hand, is a business expansion model where a franchisor grants the rights. 1-1 BUS 434 Market Entry Licensing, Franchising, and Other Contractual Strategies 1-2 Contractual Relationships • 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. cross-border exchanges in which relationship between focal firm and foreign partner is governed by explicit contract. 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. 8 Target Market Selection. e. It's also easier for the company to extricate itself from the situation if the results aren't favorable. Advantages. View Homework Help - Week 4 - Subway Case. Verified Answer for the question: [Solved] Azoo Government Projects (Scenario) The nation of Azoo needs the assistance of a contractor to construct a new bridge and a subway system. Test. Franchising. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other. What Are The Types of International Business. A) duty B). 5Explain the advantages and disadvantages of franchising. 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. The Franchiser maintains significant control of, or provides significant assistance to, the franchisee’s operation methods. 2 Understand licensing as an entry strategy. Test. 15 Licensing, Franchising and Other Contractual Strategies. licensing team. (Video) Market Entry Strategies: Contractual Market Entry ModesLess control, licensee may become a competitor, legal and regulatory environment (IP and contract law) must be sound: Partnering and Strategic Alliance: Shared costs reduce investment needed, reduced risk, seen as local entity: Higher cost than exporting, licensing, or franchising; integration problems between two corporate. B) franchise contract must include a foreign government. Create flashcards for FREE and quiz yourself with an interactive flipper. Chapter 16: Licensing, Franchising and other Contractual Strategies. Meaning. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in international business, Intellectual property, Licensing and more. Match. Firstly, licensors can generate additional revenue streams by granting licenses to third parties, enabling them to enter new markets or expand their product offerings without significant investment. On the other hand, franchise agreements allow the use of trademarks, additional intellectual. The agreement so creates a franchise relationship is the franchise agreement and aforementioned parties to a franchise agreement are the franchisor and to french. Angelica Weiss Chapter 16: Licensing, Franchising, and Other Contractual Strategies Contractual entry strategies in international business: cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract Intellectual property: ideas or works created by individuals or firms, including discoveries. Firms need to evaluate their options to choose the entry mode that best suits their strategy and goals. 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. master franchise. and industry leading guides that cover everything from francising principles to vorgeschritten franchise growth strategies. Many firms build biotech tags,. 1. 16 Licensing, Franchising, and Other Contractual Strategies. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. Question 74. 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. U. Study Resources. School Anadolu University; Course Title BUS 1332; Type. 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. Study with Quizlet. Franchising suggests the use of a whole package of signature products and business solutions, whereas licensing allows entrepreneurs to leverage certain individual property and produce and. Multiple Choice . includes exchange of intangibles and services 3. Licensing, franchising and other contractual strategies. Coca Cola is an excellent example of licensing. Licensing, Franchising, and Other Contractual Strategies. B) The franchisor holds much power, including superior bargaining power. The Franchiser requires the franchisee to make a minimum payment of $500 or more, and. Verified Answer for the question: [Solved] The reputation of a licensor will be jeopardized by a licensing agreement if the licensee _____. 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. Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the license) in exchange for royalties, license fees, or some other form of compensation. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Learn. Type of Entry. 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 subfranchise to other franchisees, assuming the role of local franchisor; 6. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. Some companies use direct exporting, in which they sell the product they manufacture in international markets without third-party. Keep in mind, however, this is strictly the franchise fee and doesn’t include other startup costs to open the. They generate a consistent, stable level of earnings from foreign operations. Some firms view licensing as a supplementary strategy to other entry strategies, such as exporting or FDI. Flashcards. Learn. 4. When considering the three basic decisions a firm must make when it decides to enter a foreign market, it must determine the market. Several strategies for franchising in East. develop, and manage the entire franchising network in its market and has the right to subfranchise to other franchisees, assuming the role of local franchisor. Ch. Exporting entails selling products to foreign customers. Terms in this set (21) Contractual entry strategies in international business. contractual agreements. Both licensing and franchising are really fantastic. Similar to a licensing agreement, under a franchising Granting rights on an intangible property, like technology or a brand name, to a foreign company for a specified period of time and receiving a royalty in return. : Licensing is a contractual agreement in which a licensor grants a licensee the right to use its intellectual property,. Staffing leverage . 2. Test. When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________. Protecting Intellectual Property. 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. The nation lacks the skilled labor and technical know-how to handle such large-scale projects. Flashcards. Licensing involves granting rights to use intellectual property, while franchising grants rights to use an entire business model. late. 8. The licensor provides no technical support or assistance in most cases. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Licensing Licensing is a contractual transaction where the firm the licensor offers some proprietary assets to foreign company the licensee in exchange for royalty fees (Kotabe and Helsen, 2010: 301). Study with Quizlet and memorize flashcards containing terms like contractual entry strategies in international business, intellectual property, intellectual property rights and more. Terms in this set (19) Contractual entry strategies. Match. Chapter 16 - Licensing, Franchising and other Contractual Strategies. 99/yearQuiz 15: Licensing, Franchising, and Other Contractual Strategies. Flashcards. Ch. Chapter 8: Global Products. Study with Quizlet and memorize flashcards containing terms like Build-operate-transfer (BOT), contractual entry strategies in international business, Intellectual Property and more. This strategy is based on franchising, the market entry mode, Subway used in order to enter foreign markets. Exporting. Intellectual property describes. International Business Strategy, Management & the New Realities. Second, some firms find it less risky and more profitable to export. 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. Match. On the other hand,. Of course, when Switzerland let the value of its franc 30% against the euro, the cost of exports increased, and Swiss goods when bought with the franc, could be purchased at a large. Two common types of contractual entry strategies are licensing and franchising. BUS MISC. 2. An industrial design is intended to _____. The book connects to students of the technological age, facing a diverse and evolving economic environment fueled by. Governed by a contract that provides the focal firm with a moderate level of control over the foreign partner. A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label. b. In existing literature, most strategies are appraised as alternatives to exporting, or as alternatives to green-field FDI. Market entry modes for international businesses. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties or other compensation. Licensing, Franchising and other Contractual Strategies Cross-border contractual relationships: give permission to use intellectual When the executives in charge of a firm decide to enter a new country, they must decide how best to do it. 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. Table 7. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets.