Business Studies

International Business I

Question:

Licensing and franchising are suitable in different situations. Explain how?

Answer:

Yes, it is right to say that licensing and franchising are suitable in different situations. For a company looking to expand, franchising and licensing are often appealing business models. In a franchising model, the franchisee uses another firm's successful business model and brand name to operate what is effectively Em independent branch of the company. The franchiser maintains a considerable degree of control over the operations and processes used by the franchisee, but also helps with things like branding and marketing support that aid the franchise. The franchiser also typically ensures that branches do not cannibalize each other's revenues.
Under a licensing model, a company sells licenses to other (typically smaller) companies to use intellectual property (IP), brand, design or business programs. These licenses are usually non-exclusive, which means they can be sold to multiple competing companies serving the same market. In this arrangement, the licensing company may exercise control over how its IP is used but does not control the business operations of the licensee.
Both models require that the franchisee/licensee make payments to the original business that owns the brand or intellectual property. There are laws that govern the franchising model and define what constitutes franchising; some agreements end up being legally viewed as franchising even if they were originally drawn up as licensing agreements. It can be clarified from the differences given below:
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International Business I

Q 1.

What is the share of India's exports in world exports?

Q 2.

Which mode of international business should be chosen by a small business man and why?

Q 3.

Explain different forms of Joint Ventures.

Q 4.

Reebok orders for footballs to local manufacturers of Ludhiana and then sells it all over the world. It is an example of what?

Q 5.

What are the major items that are exported from India?

Q 6.

Discuss as to why nations trade.

Q 7.

Discuss the scope of international business.

Q 8.

What are the benefits of international trade to firms?

Q 9.

State the important changes being observed in composition of India's external trade since 2007-08.

Q 10.

India is_largest economy in the world.

Q 11.

Discuss the merits and demerits of entering into joint ventures.

Q 12.

List the major countries with whom India trades.

Q 13.

Discuss meaning, merits and demerits of contract manufacturing.

Q 14.

Discuss any three advantages of international business.

Q 15.

When a middleman is involved in handling export procedure, then it is called by what name?

Q 16.

Licensee or franchisee pays a fee to licensor or franchisor. What is it called?

Q 17.

"International trade benefits both the parties involve."Do you agree? Justify your answer:

Q 18.

Which service has got dominating share in foreign trade in services?

Q 19.

What is the basic reason behind international trade?

Q 20.

Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.

Q 21.

List major items of India's import.

Q 22.

Name the country whose share is largest in India's exports and imports.

Q 23.

Write a short note on India's foreign investments.

Q 24.

"Foreign trade is not free from difficulties."Comment.

Q 25.

Give one point of difference between licensing and franchising.

Q 26.

How is home trade different from external trade?

Q 27.

What is the major reason under lying trade between nations?

Q 28.

Why is it said that licensing is an easier way to expand globally?

Q 29.

Out of international trade and international business which one is wider in scope?

Q 30.

Discuss meaning, merits and demerits of contract manufacturing.

Q 31.

India embarks on the path of globalisation. Comment

Q 32.

Enumerate limitations of contract manufacturing.

Q 33.

Discuss the benefits of international business.

Q 34.

What benefits do firms derive by entering into international business?

Q 35.

"International business is more than international trade". Comment.

Q 36.

In what ways is exporting a better way of entering into international markets than setting up wholly owned subsidiaries abroad.

Q 37.

"Wholly owned subsidiary is a more investing, more risky and less return giving venture."Do you agree? Substantiate your answer.

Q 38.

Discuss briefly the factors that govern the choice of mode of entry into international business.

Q 39.

Explain different forms of contract manufacturing.

Q 40.

Define international business.

Q 41.

Differentiate between international trade and international business.

Q 42.

What is invisible trade? Discuss salient aspects of India's trade in services.

Q 43.

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.

Q 44.

Distinguish between licensing and franchising.

Q 45.

What is international business? How is it different from domestic business?

Q 46.

Licensing and franchising are suitable in different situations. Explain how?