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: Internalization theory explanation on Company B’s experience in Country J. 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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Chapter 8, Problem 4CDQ

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: Internalization theory explanation on Company B’s experience in Country J.

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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