Distinguish between licensing and franchising.

Solution

Licensing

Franchising

1. Permitting another party in a foreign country to produce and sell goods under one’s own trade mark, patent or copy right in lieu of some fee is termed as licensing e.g. Pepsi and Coca Cola.

2. It is relatively liberal in terms.

• When permission is given by a producer of one country to the producer of another country with regard to sale of services under its brand name, trademark etc. is known as franchising e.g. McDonalds.

• It is very rigid in its terms and conditions.

Some More Questions From International Business - I Chapter

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International Business - I

Distinguish between licensing and franchising.

Some More Questions From International Business - I Chapter

Define “global village”.

Give meaning of International Business.

Give the types of mode of entry into International Business.

Give meaning of merchandise export and import.

Give meaning of service exports and imports.

Give meaning of direct exporting.

Give meaning of direct importing.

Give meaning of contract manufacturing.

Give meaning of licensing and franchising.

Define foreign investment.

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