Intra corporate transfers are an important part of

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Intra - corporate transfers are an important part of international trade . They account for about 40% of all U . S . merchandise exports and imports . Note : In considering exporting as its entry mode , a firm must consider many other factors besides which form of exporting to use and they are : 1. Government policies ( e . g . tariffs , quotas ) , 2. Marketing concerns , 3. Logistical considerations , 4. Distribution issues 5 iii 1.1 Exporting
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International Licensing Another means of entering a foreign market is licensing , in which a firm , called the licensor , leases the right to use its intellectual property 1.2 Technology Work methods Patents , copyrights , brand names , or trademarks to another firm , called the licensee , in return for a fee .
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7 Normally the terms of a licensing agreement are specified in a detailed legal contract , which addresses such issues as : ¡ Specifying the boundaries of the agreement ¡ Determining compensation ¡ ( e . g . Café de Coral asked for 7% of total sales ) ¡ Establishing rights , privileges , and constraints ¡ Specifying the duration of the contract 1.2 International Licensing
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The Mechanism of Franchising 8 The Franchisor The Franchisee Ü Pays up - front costs Ü May pay monthly royalties to franchisor Ü Operates by franchisor rules Ü
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