A Framework of International Business

Chapter 12 Licensing, Franchising, and Other Contractual Strategies

Learning Objectives

In this chapter, you will learn about:

• Contractual entry strategies

• Licensing as an entry strategy

• Advantages and disadvantages of licensing

• Franchising as an entry strategy

• Advantages and disadvantages of franchising

• Other contractual entry strategies

• Guidelines for protecting intellectual property

In this chapter, we address various types of cross-border contractual relationships, including licensing and 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. Intellectual property describes ...