International Entrepreneurs (Scenario)
Jennifer and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.
-Jennifer and James decide to allow a company in Hong Kong to use the rights to their software,its brand name,and product specifications in return for a fee based on sales.This agreement best illustrates which of the following international expansion strategies?

Question

Quizplus · Accepted Answer

The scenario describes a licensing agreement where Jennifer and James allow a company in Hong Kong to use their software, brand name and product specifications in exchange for a fee based on sales. This is a common international expansion strategy where a company grants another company the right to use its intellectual property (such as trademarks, patents or copyrights) in exchange for a fee. This allows the licensing company to expand its market and reach without necessarily having to invest a lot of money in setting up operations in a foreign country.

International Entrepreneurs (Scenario) Jennifer and James Have Formed an Entrepreneurial Venture to Develop