COMMERCE 1B03 Chapter 5: Chapter 5-text summary.docx
4 Feb 2014
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Less than 74% of the world"s population lives in developing areas where technology, education, and per capita income still lag considerably behind those of developed (or industrialized) nations such as canada. Chapter 5(3) global markets: exporting is selling goods and services to another country. Licensing is a global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty) Through licensing, an organization can gain additional revenues from a product that it normally would not have generated in its home market. Licensors spend little or no money to produce and market their products. If legal remedies are not available, the licensing firm may lost its trade secrets, and royalties: franchising: An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory: contract manufacturing:
