The following are the main advantages and reasons to use international licensing for expanding internationally: Obtain extra income for technical know-how and services.
Reach new markets not accessible by export from existing facilities. Quickly expand without much risk and large capital investment.
What are the three steps to enter foreign market?
- Review your company
- Develop a market entry strategy
- Prepare and execute an export marketing plan
Does McDonald’s use licensing
Fast food restaurant brand McDonald’s has welcomed The Joester Loria Group as it looks to expand its presence in the licensing space.
As the chain’s global licensing agent, JLG will develop collaborations and collections of licensed products aimed at fans across the world.
Is McDonald’s a chain or franchise
McDonald’s has been a franchising company since 1955 and has relied on its franchisees to play a major role in the system’s success.
Currently, about 95% of all U.S. restaurants are franchised to independent franchisees and about 5% are company-owned.
Why are franchises successful
Franchises have a reputation for occupying prime locations that attract lots of customers. The franchisees research the best places to open the store and the franchisor offers advice on location selection.
This allows the business to grow into a sustainable, profitable operation.
What are three methods companies use for entering foreign markets check all that apply?
- exporting
- licensing or franchising to a company in the host nation
- establishing a joint venture with a local company
- establishing a new wholly owned subsidiary
- acquiring an established enterprise
What are the methods of foreign direct investment?
- Acquiring voting stock in a foreign company
- Mergers and acquisitions
- Joint ventures with foreign corporations
- Starting a subsidiary of a domestic firm in a foreign country
Which of the following are strategy options for entering foreign markets
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 7.25 “Market entry options”).
What are the steps in international expansion?
- One of the first steps to global expansion is to create a clear value proposition
- Develop a growth strategy
- Choose your team
- Prime your product offering
- Align your business
- Establish a go-to-market strategy
- Know your tax and legal requirements
- Plan your budget
Why do firms choose FDI over licensing
The firms support FDI over licensing (or franchise options), whether the firms wish to retain or leverage its technical skills, business strategy or if the resources are clearly not subject to licensing.
The export requires the produce and selling of products to the receiving country.
How do Organisations enter foreign markets
Small businesses can enter the global market by selling directly to customers in export territories, marketing products through a local distributor, participating in a joint venture with a local business partner, or selling through a website.
Is the simplest way to enter a foreign market
The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter.
More complex forms include truly global operations which may involve joint ventures, or export processing zones.
What are the three basic strategies for entering foreign markets
opening a physical presence. selling through online marketplaces. offering direct e-commerce sales. selling indirectly through another company that exports to the target market.
Why do companies enter foreign markets
In general, companies go international because they want to grow or expand operations. The benefits of entering international markets include generating more revenue, competing for new sales, investment opportunities, diversifying, reducing costs and recruiting new talent.
What are the factors to be considered when entering a foreign market?
- Size & growth of the market (e.g
- Economic growth & levels of disposable income
- Ease of doing business / political environment
- Exchange rates
- Domestic competition
- Infrastructure
What are the three basic strategies for entering foreign markets?
- E-commerce
- Direct export
- Licensing
- Franchising
- Partnerships
- Joint ventures
- Piggybacking
- Direct investment
What is the first step in selecting a foreign market
Market potential: The first step in foreign market selection is assessing market potential. Many publications such as those listed in “Building Global Skills” provide data about population, GDP, per capita GDP, public infrastructure, and ownership of such goods as automobiles and televisions.
Which strategy for entering a foreign market has the highest degree of risk
Which global entry strategy has the highest degree of risk? Direct investment requires the highest level of investment and exposes the firm to significant risks, including the loss of its operating and/or initial investments.
What is generally the most costly method for a business to enter a foreign market
Establishing a wholly owned subsidiary is generally the most costly method of serving a foreign market from a capital investment standpoint.
Firms doing this must bear the full capital costs and risks of setting up overseas operations.
Sources
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/market-entry
https://www.premierline.co.uk/knowledge-centre/what-are-the-advantages-and-disadvantages-of-franchising.html
https://quizlet.com/456858295/chapter-13-flash-cards/
https://quizlet.com/de/272991810/entering-foreign-markets-flash-cards/
