International Management: Arranged based expansion where a given stakeholder is granted the right to use a business concept or an intelectual property.

Advantages: Low risk and low cost. Potential for fast expansion

Disadvantages: Profit loss, low control of operations. If something goes wrong it can damage the brand.

Question

Arranged based expansion where a given stakeholder is granted the right to use a business concept or an intelectual property.

Advantages: Low risk and low cost. Potential for fast expansion

Disadvantages: Profit loss, low control of operations. If something goes wrong it can damage the brand.

David Ursu · Accepted Answer

What defines "Licensing & Franchising" and what are their pros and cons as entry modes?

Arranged based expansion where a given stakeholder is granted the right to use a business concept or an intelectual property. Advantages: Low risk and low cost. Potential for fast expansion Disadvantages: Profit loss, low control of operations. If something goes wrong it can damage the brand.