Answer to Question #239753 in Marketing for Maxx

Question

1. A foreign market entry strategy is appropriate when knowledge is well codified.

Advantage of licensing

2. Low initial investment

3. Access to local knowledge

Disadvantage of licensing

4. Potential for creating a competitor

5. License contract should include product and territorial coverage, length of the contract, quality control, grant back and cross-licensing, royalty rate and structure, choice of currency, and choice of law.

6. Also known as outsourcing. Contract Manufacturing

Advantage of Franchising

7. Overseas expansion with a minimum investment

Disadvantage of Franchising

8. Revenues may not be adequate

9. Cultural problems

Advantage of Outsourcing

10. Lower political and economic risk

Answer 1

Question

The statement is true to access foreign markets and to generate new business ideas. 

Question

Advantage of licensing 

2. Low initial investment- there are lower capital requirements 

3. Access to local knowledge- by reaching out to new markets. 

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Disadvantage of licensing

4. Potential for creating a competitor- by including potential risks and licensing out one’s products.

Question 

5. It also needs to include a time plan of 1-1/2 to 2 years period. 

Question 

Outsourcing or contract manufacturing is a contract in which one firm hires another firm to be accountable for a deliberate or current activity that is or could be completed within the firm, and it involves relocating assets and employees from one company to another.

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Franchising has the advantage of overseas expansion with minimum investment since it reduces risk to a larger extent.

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Disadvantage of Franchising

8. Revenues may not be adequate- since it is not suitable for every business 

9. Cultural problems- Federal and state regulations may hinder the development of a business. 

Question 

It evades the need to hire individuals in‐house; henceforth recruitment and operational costs can be minimized to a great extent while saving on time.