International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 1CDQ
Summary Introduction
Case summary:
Company B signed a licensing agreement with the Company S nearly 50 years ago. This makes the Company B to build a strong basement in Country J. Recently Company B ends it agreement to open its own store in the Country J. This will lead to more cost and risk in the operation in Country J.
Characters in the case:
- Company B
- Country J
To discuss: The reason for Company B to choose the licensing strategy in Country J in its initial stage.
Introduction:
Licensing refers to the right given to the licensee for purchasing and selling the products for some specified royalty fee on units sold.
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