Question:
Why is it said that licensing is an easier way to expand globally?
Answer:
It is said that licensing is an easier way to expand globally because of its advantages over other modes of international business.
- Less Expensive: Under the licensing, it is the licensee who sets up the business unit. Therefore, licensor has to invest no money. Therefore, it is considered as a cheaper way of entering*into international business.
- Zero Risk of Loss: Licensor need not take pain of risk of profits and loss. He is paid a pre-determined fees called royalty by the licensee. As long as licensor continues to produce under the license, licensor keeps on getting his fees irrespective of whether licensee is making profits or incurring losses.
- Less risk of government intervention or takeovers: A local person handles the business in foreign country. Therefore, there are lesser chances of government intervention or takeovers.
- Better knowledge of local needs: Since licensee is the local person, he has better understanding of local needs, marketing strategies and business environment.
- Safety of Intellectual Property Rights: As per the terms of the licensing, only licensee can make use of licensor's copyrights, patents and brand names in foreign countries. Therefore, there is lesser risk of these intellectual property rights being missed by other local firms.
International Business I
Q 1.
What is the share of India's exports in world exports?
Q 2.
Explain different forms of Joint Ventures.
Q 3.
Which mode of international business should be chosen by a small business man and why?
Q 4.
What are the major items that are exported from India?
Q 5.
Reebok orders for footballs to local manufacturers of Ludhiana and then sells it all over the world. It is an example of what?
Q 6.
Discuss as to why nations trade.
Q 7.
Discuss the scope of international business.
Q 8.
State the important changes being observed in composition of India's external trade since 2007-08.
Q 9.
What are the benefits of international trade to firms?
Q 10.
Discuss the merits and demerits of entering into joint ventures.
Q 11.
List the major countries with whom India trades.
Q 12.
Discuss meaning, merits and demerits of contract manufacturing.
Q 13.
India is_largest economy in the world.
Q 14.
Discuss any three advantages of international business.
Q 15.
Licensee or franchisee pays a fee to licensor or franchisor. What is it called?
Q 16.
When a middleman is involved in handling export procedure, then it is called by what name?
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.
Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.
Q 20.
What is the basic reason behind international trade?
Q 21.
How is home trade different from external trade?
Q 22.
Why is it said that licensing is an easier way to expand globally?
Q 23.
List major items of India's import.
Q 24.
Write a short note on India's foreign investments.
Q 25.
What is the major reason under lying trade between nations?
Q 26.
Name the country whose share is largest in India's exports and imports.
Q 27.
"Foreign trade is not free from difficulties."Comment.
Q 28.
Give one point of difference between licensing and franchising.
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.
What benefits do firms derive by entering into international business?
Q 34.
Discuss the benefits of 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?
