The Five Common International-Expansion Entry Modes. (1995) introduced a comprehensive foreign market entry decision framework. The transaction market entry of licensing is. , visiting the country; importance of relationships to finding a good partner; use of agents. 1. 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. Licensing and franchising are examples of transfer-related market entry strategies. saralarabara. Everybody deserves the benefit of the doubt, but it’s important to establish that the party is indeed legally able to enter a contractual relationship. C) A local firm allows the focal firm to blend into the local market, attracting less attention. Coca-Cola. Companies need to have a strategy to enter world markets. 1 International-Expansion Entry Modes; Type of Entry Advantages. 4. When the executives in charge of a firm decide to enter a new country, they must decide how best to do it. threats, (3) resources required for each entry mode and defensive strategy to be deployed, and (4) the time required to use each entry mode and. Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies in IB, Licensing def, Licensing pro and more. It’s a low-cost, low-risk option compared to the other strategies. Firms can pursue them independently or in conjunction with other entry strategies 4. cross-border contractual relationships share several common characteristics. Conversely, we incur a $1,250 loss if we get stopped out. After studying this chapter, you should be able to: 15. , 2010: 60). Firms can pursue them independently or in conjunction with other foreign market entry strategies. In the months and years before expanding, laying out the groundwork can help companies identify a clear direction and achieve success. 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. , 75 percent) joint venture is a contractual entry mode strategy A solid joint venture entry strategy should encompass several important elements. governed by a contract that provides the focal firm with moderate level of control over the foreign partner 2. Contractual entry strategies involve using contracts such as licensing and franchising. Contractual entry strategy _____ in international business refer(s) to a cross-border exchange in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. They are governed by a contract that provides the focal firm with moderate level of control over the foreign partner They typically include the exchange of intangibles and services Firms can pursue them independently or in conjunction with other entry strategies They provide dynamic, flexible choice They often reduce local perceptions of the. Available under Creative Commons-ShareAlike 4. These modes of entering international markets and their characteristics are shown in Table 6. Secondly, the automation process empowers commercial teams to self-serve on contracts, rather than waiting on. Chapter 16 Licensing, Franchising, and Other Contractual Strategies Learning Objectives: 1. The Coca-Cola Company is the world’s largest beverage company. Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. A contractual entry mode in which a company that owns intangible property (the licensor) grants another firm (the licensee) the right to use that property for a specified period of time Franchising A contractual agreement in which one company (the franchiser) supplies another (the franchisee) with intangible property and other assistance over. , visiting the country; importance of relationships to finding a good partner; use of agents. Partnering. Offers you a passive source of income. • Intellectual property: Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. 2. Chapter 4- Social and Cultural Environments. Licensing C. These. 1. Who are the experts? Experts are tested by Chegg as specialists in their subject area. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. 38 terms. 2. It's also easier for the company to extricate itself from the situation if the results aren't favorable. [2] defined market entry as "a planned move into a new or adjacent market for the creation and delivery of offerings. Define and distinguish the following contractual entry strategies: build-operate-transfer, turnkey projects, management contracts, and leasing. Study with Quizlet and memorize flashcards containing terms like ________ 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. Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. This definitio n includes both entry mode strategy and . The contract manufacturer will quote the parts. Exporting involves marketing the products you produce in the countries in which you intend to sell them. Licensing, Franchising and. There are various types of entry models in to international market, however, all are divided into three groups namely, export entry, contractual entry and investment entry modes (young et al,1989; Roots. -Screen and qualify partner candidates. Don’t agree to anything or sign anything without first checking out the other party and its legal background. Question: Question 17 Not yet answered 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. contractual agreements. 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". Types Indirect Direct agent/distributor Direct branch/subsidiaryHere are 6 strategies for effective contract management. They provide dynamic flexible choice Exporting is an effective entry strategy for companies that are just beginning to enter a new foreign market. 15. certain "cooperative" modes. Which of the following is a contractual entry mode? Turnkey operation. If a small business wants to take the least risky strategy to enter its first foreign market, it would choose which of the following global entry strategies? Exporting. to foreign markets. 1 (€ 133) billion toy industry. It is a particularly useful strategy if the purchaser of the license has a relatively large market share in the market you want to enter. Here are some other examples of contract manufacturing in a few different industries:10. The investment entry mode is the one that requires the most commitment on the part of a company, in terms of both management time and financial and human resources. Exit strategy. They often enjoy complete de facto strategic and operational control (Contractor and Kundu, 1998b; Dunning, 1988). Franchising. Intellectual property. 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. Question: Contractual entry strategies in international business are cross-border exchange in which the relationship between the focal firm and its forgein partner is. 3. Licensing. acquisitions), contractual entry modes (e. S. Foreign direct. In any case, the future trade. Franchising is a contractual international market entry mode as a licensing agreement when an organization wants to enter a foreign market quickly with low risk and resource commitment. Global Market Entry II - 2nd Midterm Licensing, Investment and Strategic Alliances Learn with flashcards, games, and more — for free. The international entry strategy that requires the least investment of resources and has the least risk is _____. Contract management refers to the process of creating, negotiating, assessing, and monitoring a contract’s performance to ensure that both parties fulfill their obligations. 2. The franchisor exercises enormous control over the franchisee’s business regarding the quality of service provided, marketing and selling strategies, etc. There are four different approaches of foreign market-entry from which to decide on: exporting, contractual agreements, strategic alliances, and direct foreign investment. It is a form of outsourcing. The institutional distance between home and host countries influences the benefits and costs of entry into markets where a firm intends to conduct business. Mainly three modes of entry into foreign markets can be exercise. The contractual arrangements ( CA ) mode of entry is in most cases a stepping stone to international production. Contractual entry strategies 2. they are governed by a contract that provides the focal firm with a moderate level of control over the foreign partner 2. While the pandemic has led Indian companies to work more frequently with global partners in virtual environments, it remains to be seen whether this is a permanent shift in business practices. This definition includes both entry mode strategy and international market selection. Disadvantage: no intern-al knowledge of the market. The time required to implement entry modes to foreign markets may strongly vary: contract-based entry modes usually entail quicker realization compared to equity-based entry modes. As discussed in the preceding chapter, entry mode choice is seen as “a critical component” in the process of internationalization (Morschett et al. 3. Second, some firms find it less risky and more profitable to export existing products, instead of developing new ones. Clear direction: Market entry strategies require market research about exporting guidelines, foreign tariffs, and more. 4 Conclusion. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional. three main reasons why companies export-expand total sales when domestic markets become saturated. Licensing. When importing or exporting services, it refers to establishing and managing contracts in a foreign country. Advantages and disadvantages of licensing 4. Lymbersky (2008) argues that a n international licensing contract enables foreign companies, either fully or partly to produce a proprietor’s product. Chemawat (in Deresky) developed a CAGE strategy of global entry that is an abbreviation of. More recently, Brouthers and He nnart (2007) classified entry modes into two broad categories, The Five Common International-Expansion Entry Modes. Direct exporters often sell directly to a consumer (B2C), a business (B2B), or a distributor in a foreign country. Two common types of contractual entry strategies are licensing and franchising. 2) The licensing company benefits from the licensee company’s local market knowledge. Question: Contractual entry strategies in international business are cross-border exchange in which the relationship between the focal firm and its forgein partner is governed by an explicitly contract. • Entry strategy for a single target country in which the partners share ownership of a newly-created business entity . two common types of contractual entry strategies relatively inexpensive way for a firm to establish a presence in the market without having to resort to FDI RoyaltyContractual 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. C) fails to give a business greater freedom in fulfilling its end of a countertrade deal. We define franchising as a strategy mainly used by service companies, that allows the franchisee to use a business model, processes or brand name for a fee, to conduct. 2. International Business: The New Realities, 5th Edition caters to a post-millennial student audience, the most diverse and educated generation to date. g. A brief overview of the different modes of entry into emerging market opportunities. 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. Foreign licensing is a simple way of getting involved in international marketing. It’s a low-cost, low-risk option compared to the other strategies. In this chapter, we address various types of cross-border contractual relationships, including licensing and franchising. 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. Direct exporting is often considered the default choice for new market entry. Contractual Entry Strategies in International Business. Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. 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. Contractual entry modes are defined as long-term non-equity associations between an international company and an entity in a foreign target country that involve the transfer of technology or human skills from the former to the latter (Root, 1994, p. 1 “International-Expansion Entry Modes” (Zahra et al. ‘Market’ in this case may refer to a market segment, domestic or international. , wireless telecommunications). 1. This partnership can occur between businesses, non-profit organizations, or government entities. There are several market entry strategies and each one has its own advantages. Ideas or works created by firms or individuals, such as patents, trademarks, and copyrights. Secondly, it should involve detailed market analysis to understand the competitive landscape and potential challenges. Firms can pursue them independently or in conjunction with other entry strategies. Contractual modes involve the use of contracts rather than investment. When an organisation has made a decision to enter an overseas market, there are a variety of options open to it. Principles of Management. For many companies, setting up a fully-fledged operation in the new market is a big commitment – but also brings huge advantages. Advantages of Licensing and Franchising. Entering International Markets Entering foreign markets requires an analysis that examines each of the five major global entry strategies and their associated risks and rewards. decide on the mode of. 2. (1987) Entry strategies for international markets, Lexington, Mass, Lexington . -Screen and qualify partner candidates. firms to develop strategies to enter and expand into markets outside their home locations. Contractual entry strategies in international business cross-border exchanges where the relationship between focal firm and its foreign partner is governed by an explicit contract. 6. direct investment O d. Can be pursued independently or in conjunction with other entry strategies. Strategic Management Chapter 7. 102) 67) Which of the following is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time? A) franchising B) licensing C) management contract D) strategic alliance. , Patents provide inventors the right to. His new edition represents the latest word on an evolving and complex subject. ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words. drive early entrants out of the market. 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. - As entry strategy, licensing requires neither substantial capital investment nor extensive involvement of licensor in foreign markets. Question: Question 26 Exporting and forvion direct Investment are the two most frequently employed contractual entry strategies Select one True False 27 in his International Product Life Cycle (PLC) Theory, Raymond Vernon observed that each product and its manufacturing technologies go through the stages of evolution: Introduction, maturity,. Key elements of the acquisition strategy include, but are not limited to: Flexible and modular contract strategy that enables software development teams to rapidly design, develop, test, integrate, deploy, and support software capabilities. 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 True Exporting and foreign direct investing are two common types of contractual entry strategies T/F Two common types of contractual entry strategies are licensing and franchising. Market entry case examples to learn from. The above. Nonetheless, acquisitions are risky. 1. LEGO products are in 130 countries—but the company is always looking to expand its operations. decide on the target product/market. Foundation Concepts • Contractual entry strategies in international business: Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. It emphasizes adapting products and services to local markets. Entry Direct and indirect exporting Contractual Entry Licensing/franchising, technical agreements Contract manufacturing,. Definition: Market Entry Strategies are the plan, methods or channels available with the firm to expand their business in the new target market within and across nations. At the same time, some contractual modes of entry can prevent a company from taking full advantage of large market growth. all of the above e. View the full answer. (2004) differ between ownership-based entry modes (OBEs) and contract based modes (CBMs). Selecting and Managing Entry Modes. Wu & Zhao 186 foreign market entry decision framework, which identifies export, contractual and investment as the main foreign market entry modes. Doing Business in Emerging Markets: Entry and Negotiation Strategies Milind R Agarwal , Pervez Ghauri , Tamer Cavusgil There are many texts available on International Business, but only a few provide a. via export modes) or both production and marketing operations there by itself. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. These same reasons make exporting a good strategy for small and midsize companies that can’t or won’t make significant financial investment in the international. The choice of international strategy has long-term implication for MNCs. These three factors are firm factors, environmental factors and. 16 to 1 SEK. 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. 13 Selecting and Managing Entry Modes flashcards. Available under Creative Commons-ShareAlike 4. cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract. 6 Network and Relationships Importance for Huawei 42. Contractual modes involve the. This kind of ‘greenfield’ investment – ‘greenfield’ meaning. Intellectual Property. Organization will make in the light cost, risk and the. Beyond importing, international expansion is achieved through exporting, licensing arrangements, partnering and strategic alliances, acquisitions, and establishing new, wholly owned subsidiaries, also known as greenfield ventures. 70 terms. The. Oct 26, 2018. Contractual modes involve the use of contracts rather than investment. This lecture includes: Entry Strategies for Emerging Markets, Competitive Levels, Product-Market Fit, Business Environment, Entry Strategies, Export Entry Modes, Contractual Entry Modes,. wishes to maintain direct control of the marketing program. g. . 412 Contractual entry strategies in international business- cross-border exchanges where the7. International Market Entry Mode. They are governed by a contract that provides the focal firm a moderate level of control over the foreign partner. 0 International License. According to Buckley et al. market size. 1 “International-Expansion Entry Modes” (Zahra et al. Contractual obligations mainly depend on the entry mode. Arrow, ‘America’s shirt maker since 1851’ follows the licensing strategy to expand worldwide. 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. Why franchising is the best market entry strategy? The most common advantages of franchising are that it capitalises on an already successful strategy, the franchisee generally has local knowledge, it's less risky than equity based foreign entry modes, and the franchisor isn't exposed to risks associated with the foreign market (Alon, 2014). 2 Franchising. ). firm can pursue individually or in conjunction with other entry strategies 4. Franchising. dynamic, flexible choices 5. 14). Fresh features from the #1 AI-enhanced learning platform. 6 market entry practices specifically for service exports. Global sourcing is a specific type of international contracting that we addressed in Chapter 13. Market entry strategies are the methods and channels that a company uses to enter a new market. SOURCE : Root, Foreign Market Entry Strategies, p. Q: In 2008 Time Warner, Inc. $ 151. appropriate entry mode for that specific market. Franchising 3. It’s a low-cost, low-risk option compared to the other strategies. In the. 9 Types of Foreign Market Entry Strategies. Contract Manufacturing. Besides, wholly-owned subsidiaries are the most usual ownership mode, since we only found four joint ventures. alexis_pflumm. What are the four steps in developing a successful export strategy? (1) Identify potential markets (2) Match needs to abilities (3) Initiate meetings (4) Commit resources. market entry strategies are numerous and imply a varying degree of risk and of commitment from an international firm. 1. Flashcards. It’s a low-cost, low-risk option compared to the other strategies. The licensor provides no technical support or assistance in most. management 6. International Marketing (OCEAN591) 19 Documents. Essentially franchising as a contractual entry mode can be described as a type of licence agreement which means that an organization wants to enter a foreign market quickly with a low degree of risk and. internationalization and entry strategies employed as a tool, in executing their international marketing goals, this will allow us to have deeper insight on how firmsA contract management strategy is a business tool for implementing and overseeing all stages of a contract to increase efficiency and decrease risk. Research and analyze international opportunities and to develop a coherent export strategy. This chapter addresses common motives for international expansion as well as the advantages and disadvantages of a variety of international market entry strategies. Exporting. Foundation Concepts • Contractual entry strategies in international business: Entering a formal agreement with a distributor, joint venture firm, or other partner abroad - Often involves granting permission to a foreign partner to use intellectual property • Intellectual property: Ideas or works created by firms or individuals, such as patents, trademarks,. Previous question Next question. International. A. Create flashcards for FREE and quiz yourself with an interactive flipper. Market entry strategies refer to a company’s goals, plans and decisions in regard to which market to enter, when to enter and how to enter (taking into account. Sets with similar terms. Each strategy has its own advantages and disadvantages that. Contractual entry strategies in international business. , licensing and franchising) have lower up-front costs than investment modes do. The company contracts a firm in the foreign market to assemble or manufacture the products but they still have the responsibility for marketing and distribution of the products according to Root (1994:113); Chapter Overview. 3. Disadvantages. 5. 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. The question about the right international strategy is often divided into five major subjects: (1) Market entry as part of a general strategy, (2) the selection of target markets, (3) choosing the right time to enter a foreign market. GSPs are ambitious, reciprocal, cross-border alliances that may involve business partners in a. Q: In 2008 Time Warner, Inc. Entry Strategies for Emerging Markets; 2 Entry Strategies for Emerging Markets. Franchising. The. In addition to exporting, companies can choose to pursue more specialized modes of entry—namely, contracutal modes or investment modes. Louis Vuitton company incorporates pricing based on value into its mix of product marketing. Study with Quizlet and memorize flashcards containing terms like Low-control Strategies (Exporting and Counter-trade & Global Sourcing), Moderate-Control Strategies (Licensing, Franchising and other Contractual Strategies, Project Based (non-equity) collaborative ventures), High-Control Strategies (Minority-owned and Majority owned equity joint venture & Wholly Owned Subsidary (FDI) ) and more. View Solution. In addition to exporting, companies can choose to pursue more specialized modes of entry—namely, contracutal modes or investment modes. A strategic alliance is. Learn from your partner (and apply that knowledge within your organization) Study Chapter 5: Entry into Foreign Markets flashcards. Preview. ideas or works created by individuals or firms, including discoveries and inventions; artistic, musical, and literary works; and words. INVESTMENT ENTRY MODE. , a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. In addition to the standard license process, a company will assist in establishing the business with the design, equipment, organization, and marketing. 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. Contractual entry strategies in international. Global Market Entry Strategies. The quality of its production, the ability to adapt to the preferences of buyers and a meticulous licensing strategy are the main factors that have led to the firm's remarkable success in the U. There are two major types of market entry modes: equity and non-equity. Exporting is a easy way to enter an international market. Licensing or Franchising partner has knowledge about the local market. Strategy planning, market entry and implementation (3rd ed. The choice of foreign country markets and the selection of corresponding market entry strategies belong to classical questions in the international business research, which – despite their high relevance for business success – have not yet been consistently solved. The equity modes category includes joint ventures and wholly. This chapter examines the management contract and the key components that shape its success as an entry mode. A low-cost exit from industries (A new entrant can form a. Exporting, importing, and countertrade 2. ex: Starbucks has used direct ownership, licensing and franchising for shops and products. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of. Each category has several subcategories. 27). Contract strategy means selecting organizational and contractual policies, means and methods required for the execution of a specific project throughout all stages of pre-design, design, construction and post construction with a goal of meeting main project objectives. 10-14Study with Quizlet and memorize flashcards containing terms like Contractual entry strategies, Characteristics of contractual relation, Intellectual property and more. Exporting to a foreign market is a quite common entry strategy many firms follow for at least some of their market. Low cost of entry into an international market. The equity modes category includes joint ventures and wholly owned subsidiaries. they typically include the exchange of intangibles and services 3. Requires extensive research. The results of your market research will also help you decide on a market entry strategy. In this section, we will explore the traditional international-expansion entry modes. Licensing: Arrangement in which the owner of. - negotiate a formal agreement. D) Focal firms use contractual relationships as an advanced entry strategy in foreign. True False FDI and exporting are the two most commonly used contractual entry strategies in international business False True In factor proportions. Contract: Liscening Agreement. 15. The following sub heading will discuss how licensing impacts market entry in the United States. , 75 percent) joint venture is a contractual entry mode strategyContractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed. Along with Coca-Cola, recognized as the world’s most valuable brand, the company markets four of the world’s top five nonalcoholic sparkling brands, including Diet Coke, Fanta, Sprite, and a wide range of other beverages, including diet and light beverages, waters, juices and. Focal firm has moderate level of control over the foreign partner. Terms in this set (38). Study Ch. This assignment on market entry strategies. Two common types of contractual entry strategies include: _____ and _____ relationship. S. The simplest form of entry strategy is exporting using either a direct or indirect method such as an. Contract manufacturing and franchising are two specialized . 1. Study with Quizlet and memorize flashcards containing terms like What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee?, What form of business ownership is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a. The non-equity modes category includes export and contractual agreements. Licensing is a relatively sophisticated arrangement where a firm transfers the rights to the use of a product or service to another firm. LEGO is a late entrant in the contractual. What are unique aspect of contractual relationship (5) 1. It is important as a marketer that you understand the level of risk involved in each and are able to identify which strategy firms are currently using Firms looking to. When LEGO set its sights on China, it entered the market by putting money into opening LEGO stores in major cities as well as cities that showed demand and interest. More than a third of the sales of toys and non-electronic games worldwide are generated through licenses. - Arrangement where owner of intellectual property grants another firm right to use property for specific time in exchange for royalties or other compensation. Chigrin shares a five-step approach to creating a winning market entry strategy to expand into a new market. Licensing affords new international entrants with a number of advantages: Licensing is a rapid entry strategy, allowing almost instant access to the market with the right partners lined up. 6. ability to preempt rivals and capture demand by establishing a strong brand name. Source. Contractual modes involve the use of contracts rather than investment. directly tied to jobs. Market entry strategies are the methods and channels that a company uses to enter a new market. Can harm existing relationships. Licensing. Through a distribution contract, the foreign investor makes real its planned market entry strategy in order to achieve its goals. For international trade, Foreign market entry modes are the ways in which a company can expand its services into a non-domestic market. 2. The. The mode of entry depends on the opportunity, what you know about it, and the opportunity cost of putting that effort and money into another opportunity. Study with Quizlet and memorize flashcards containing terms like 1) 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. There are as many motives as there are strategies for international expansion. The selection of entry modes when penetrating a foreign market ± A research study on the education institutes choice of entry mode Author(s) : Annica Gunnarsson , Master in Marketing 4FE02E Tutor: Åsa Devin e Subject: International Marketing Strategy Level and semester: Master´s Thesis , Spring 2011Expert-verified. , and Graham, John L. Each mode of market entry has advantages and disadvantages. contractual market entry strategies. Advantages of Licensing and Franchising. Third, firms that face seasonal domestic demand. Using a central platform to manage the entire process and analyze data can improve contract workflows. These different modes imply different levels of ownership and control (Erramilli and Rao, 1993; Contractor and Kundu, 1998a,. 3. Intellectual Property Answer & Explanation. g. FDIs have been portrayed as effective market entry strategy in the United States Market. 5. g. Export describes business activities where goods and/or services are sold outside the country in which the major value-added activities took place. A) Cooperative strategies B) Entry strategies C) Options strategies D) Competitive strategies and more. Licensing and franchising are especially salient contractual entry strategies. 3) Franchising Services. It’s a low-cost, low-risk option compared to the other strategies. They. Identify the company/ies using the entry strategies and briefly explain how they participate in the International Business (refer your answer in no). 2) Licensing Services. Discard Apply . BUY. 82. 2. -Choose going in alone or collaboration. Retrieved March 24, 2022, from marketing91/contract-. Be that as it may, in the. Indirect and Direct Export. More recently, Brouthers and He nnart (2007) classified entry modes into two broad categories,Some of the most common strategies for market entry include: Exporting.