GMS 522 Lecture Notes - Lecture 8: East India Company, Global Marketing, Complete Control

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 522
• Professor: Carlyle Farrell

Document Summary

Introduction: global marketing manager has a number of options available in deciding how best to enter foreign markets, must understand the characteristics, advantages, and disadvantage of each approach in order to make an informed decision. Intellectual property involved in licensing transactions may include patents, trademarks, copyright, materials, technical drawings, or business models. International licensing agreements provide the licensee with the right to work the acquire intellectual property within a defined geographical territory: advantages for licensor: Franchising: franchising: company (franchisor) grants another (franchisee) the right to use its intellectual property in a specified jurisdiction over a defined time period. International franchise operations may be set up as either direct or indirect systems: direct systems franchisor transacts directly with franchisees in the foreign market and controls their operation. Indirect systems franchisor transacts with a master franchisee in the foreign jurisdiction: master franchisee in turn is responsible for the recruitment, coordination and control of individual franchisees in its territory.