Question 1

A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label.

Accepted Answer

A patent refers to the exclusive right given to an inventor for a particular invention or process, not just a design, symbol, logo, or word on a product label. This type of protection is usually given through trademarks or copyright.

Question 2

An industrial design is intended to ________.
A)eliminate the possibility of the design being copied
B)improve a product's performance and marketability
C)protect firms from intellectual property theft
D)protect information of commercial value

Accepted Answer

An industrial design is intended to improve a product's performance and marketability through visually appealing and functional design elements. It is not primarily intended to prevent the design from being copied or protect commercial information, which are other areas of intellectual property law.

Question 3

Patents provide inventors the right to prevent another person or company from selling or using an invention for up to twenty years.

Accepted Answer

This is the basic definition of a patent.

Question 4

An industrial design is a logo belonging to an organization whose members use it to identify themselves and associate their products with a level of quality.

Accepted Answer

An industrial design is not a logo, it refers to the visual appearance of a product or its packaging. A logo is just one element of branding used to represent an organization.

Question 5

________ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset.
A)Duty
B)Residual
C)Royalty
D)Tariff

Accepted Answer

A royalty is a fee paid by a licensee to a licensor for the use of intellectual property such as patents, trademarks, or copyrights. The royalty is often calculated as a percentage of the gross sales generated from the licensed asset.

Question 6

Which of the following is characteristic of cross-border contractual relationships?
A)When compared to FDI, they are less susceptible to volatility and risk, and tend to bring both parties a predictable stream of revenue.
B)The focal firm attains maximum control by establishing a physical presence, and ownership of key assets, in the foreign market.
C)It attracts high attention and criticism for the focal firm because of the local perception of foreign entities.
D)They are governed by a contract that provides the focal firm with no control over the foreign partner.

Accepted Answer

Cross-border contractual relationships are based on a contract that provides some level of control and predictability for both parties, making them less susceptible to volatility and risk.

Question 7

Which of the following is true about cross-border contractual relationships?
A)It is a more visible strategy than FDI and draws a lot of criticism from the local market.
B)They are more susceptible to volatility and risk compared to FDI.
C)A local firm allows the focal firm to blend into the local market, attracting less attention.
D)Focal firms use contractual relationships as an advanced entry strategy in foreign markets.

Accepted Answer

Cross-border contractual relationships often involve partnerships with local firms, allowing the focal firm to integrate more seamlessly into the local market and attract less attention compared to more visible strategies like FDI.

Question 8

Which of the following is NOT provided by the licensor?
A)ongoing managerial guidance
B)technical information and assistance
C)an advisory role
D)trademark

Accepted Answer

The answer of Which of the following is NOT provided...

Question 9

Which of the following is provided by the licensor in a licensing agreement?
A)a monetary down-payment plus royalties for all products sold locally
B)a combination of intellectual property and technical information and assistance
C)a storefront or facility and the necessary materials to make the product
D)a combination of a lump-sum payment and the intellectual know-how

Accepted Answer

The licensor in a licensing agreement typically provides a combination of intellectual property (such as patents or trademarks) and technical information and assistance to the licensee. This allows the licensee to use the licensor's knowledge and expertise to make and sell a product or service. A down-payment, royalties, a storefront, or a lump-sum payment may be part of the agreement, but they are not necessarily provided by the licensor.

Question 10

Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract.

Accepted Answer

Contractual entry strategies are characterized by explicit contracts that govern the relationship between the focal firm and its foreign partner in cross-border exchanges.

Question 11

A collective mark ________.
A)is intended to improve the product's aesthetics and usability as well as increase its production efficiency, performance, or marketability
B)protects original works of authorship, giving the creator the exclusive right to reproduce the work, display and perform it publicly, and authorize others to perform these activities
C)is a distinctive design, symbol, logo, word, or series of words placed on a product label
D)is a logo belonging to an organization whose members use it to identify themselves and associate their products with a level of quality or accuracy, geographical origin, or other positive characteristic

Accepted Answer

A collective mark is a logo belonging to an organization whose members use it to identify themselves and associate their products with a level of quality or accuracy, geographical origin, or other positive characteristic.

Question 12

The purpose of intellectual property rights is to ________.
A)prevent excessive regulation and government bureaucracy
B)grant a firm permission to use another firm's proprietary names
C)allow inventors monopoly advantage for a specified period of time
D)allow a firm to use an entire business system in exchange for compensation

Accepted Answer

The purpose of intellectual property rights is to grant inventors and creators exclusive rights to their work for a limited period of time (typically 20 years for patents), allowing them a monopoly advantage to exploit their innovation and earn returns on investment. This exclusive right enables the inventor to control the use and commercial exploitation of the innovation, preventing others from using, manufacturing, or selling it without the owner's permission.

Question 13

In a licensing agreement, the licensee provides ________.
A)the rights to use its industrial design
B)intellectual property, technical information and assistance
C)a combination of down-payment plus royalty
D)the know-how and supporting products such as, raw materials and components

Accepted Answer

In a licensing agreement, the licensee typically provides a combination of a down-payment plus royalty to the licensor in exchange for the rights to use the licensor's intellectual property.

Question 14

Which of the following is an example of licensing?
A)An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada.
B)An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its environmentally-friendly cars.
C)A South-Korean consumer electronics manufacturer produces the screens for its brand of television and sends orders to a factory in China to manufacture the casing for the television.
D)A U.K-based motorcycle manufacturer, produces limited-edition customizations of the company's stock models and sells it to customers around the world.

Accepted Answer

Licensing involves giving the right to use a particular technology, process or trademark to another company for a specific period of time. In this case, the American electronics firm has licensed the new process for manufacturing e-book readers to a Canadian electronics manufacturer.

Question 15

Which of the following is an example of intellectual property?
A)systems of measurement
B)Volkswagen's logo
C)an unpublished book
D)a phone directory

Accepted Answer

The answer of Which of the following is an example...

Question 16

Explain the role of intellectual property rights in foreign market contractual strategies. What constitutes the infringement of intellectual property?

Accepted Answer

The answer of Explain the role of intellectual property rights...

Question 17

A cross-border contractual relationship provides the focal firm with ________ over the foreign partner.
A)a low level of control
B)a moderate level of control
C)a high level of control
D)seldom any control

Accepted Answer

The answer of A cross-border contractual relationship provides the focal...

Question 18

Exporting and foreign direct investing are two common types of contractual entry strategies.

Accepted Answer

Exporting and foreign direct investing are not contractual entry strategies; they are types of international market entry strategies. Contractual entry strategies typically involve licensing, franchising, and similar agreements.

Question 19

Describe six unique qualities shared by all cross-border contractual relationships.

Accepted Answer

The answer of Describe six unique qualities shared by all...

Question 20

When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________.
A)industrial design rights
B)franchising
C)joint venture
D)equity venture

Accepted Answer

Franchising is an arrangement in which a firm (franchisor) allows others (franchisees) to use its entire business system, including branding, products or services, operational procedures, and marketing, in exchange for compensation. This arrangement allows for the expansion of the franchisor's brand and business without bearing the costs and risks of opening new locations, while the franchisee can benefit from a proven business model and established brand recognition.

Quiz 15: Licensing, Franchising, and Other Contractual Strategies

A patent exclusively refers to a distinctive design, symbol, logo, word, or series of words placed on a product label.

An industrial design is intended to ________.

Patents provide inventors the right to prevent another person or company from selling or using an invention for up to twenty years.

An industrial design is a logo belonging to an organization whose members use it to identify themselves and associate their products with a level of quality.

________ is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset.

Which of the following is characteristic of cross-border contractual relationships?

Which of the following is true about cross-border contractual relationships?

Which of the following is NOT provided by the licensor?

Which of the following is provided by the licensor in a licensing agreement?

Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract.

A collective mark ________.

The purpose of intellectual property rights is to ________.

In a licensing agreement, the licensee provides ________.

Which of the following is an example of licensing?

Which of the following is an example of intellectual property?

Explain the role of intellectual property rights in foreign market contractual strategies. What constitutes the infringement of intellectual property?

A cross-border contractual relationship provides the focal firm with ________ over the foreign partner.

Exporting and foreign direct investing are two common types of contractual entry strategies.

Describe six unique qualities shared by all cross-border contractual relationships.

When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as ________.