Chapter 7 International Market Entry Mode - Amended
Chapter 7 International Market Entry Mode - Amended
Chapter 7 International Market Entry Mode - Amended
Semester 2, 2017/18
ATW 395/3 International Business
Learning Objectives
• Franchising: arrangement
in which the firm allows
another the right to use an
entire business system in
exchange for fees, royalties,
or other compensation.
Licensors run the risk of creating competitors, as Mattel discovered when it granted a
license to a Brazilian firm to market Barbie dolls. The latter firm went on to create a
competitor to Barbie, the Susi doll.
Franchising
Source: Adapted from UNCTAD, World Investment Report 2011 (New York: United Nations, 2011)
Number of Franchise Outlets (Thousands)
Advantages and Disadvantages of Franchising