Asked by Alexander Schneider on May 01, 2024
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Nemmark Fantasy World is a leading water park in Neora. Solaris Creators wants to open a similar water park in its country, Lisdon. To accomplish this, a contractual agreement is made between Nemmark and Solaris. According to the contract, Nemmark will receive 20 percent royalty on ticket sales in exchange for providing Solaris Creators the authority to use Nemmark's brand. In the context of entering a foreign market, this scenario exemplifies the entry mode of _____.
A) turnkey operation
B) licensing
C) joint venture
D) exporting
Licensing
A business arrangement in which one company allows another to use its trademark, patent, software, or other intellectual property for a fee or royalty.
Contractual Agreement
A legally binding agreement between two or more parties with mutually agreed-upon terms and conditions.
Royalty
A payment made to the owner of certain types of rights, such as patents or copyrights, for the use of their property by others.
- Comprehend the various strategies for entering international markets.
- Determine the elements that affect a company's decision on the mode of entering international markets.
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Learning Objectives
- Comprehend the various strategies for entering international markets.
- Determine the elements that affect a company's decision on the mode of entering international markets.
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