A know-how agreement is characterized by which of the following?
A) exclusive rights to reproduce original design work
B) permission to use manufacturing facilities for a fee
C) exchanging technological or management information for royalties
D) trading the use of a name brand for management advice
Question 2Northern Italy is recognized as a(n) ________ for the fashion industry.
A) economic hub
B) industrial cluster
C) competitive advantage
D) diamond model
Question 3An advantage of licensing is that firms are able to ________.
A) enter markets with extensive trade barriers
B) share knowledge with small, inexperienced firms
C) avoid markets that restrict foreign ownership
D) find success during economic downturns
Question 4In a short essay, discuss the standardization of two marketing components: advertising and distribution.
What will be an ideal response?
Question 5Franchisors most likely give all of the following to franchisees in a business format franchising agreement except ________.
A) production methods
B) sales systems
C) raw materials
D) ongoing support
Question 6By establishing a brand name and market power through a licensing agreement, licensors are able to ________.
A) deter competition
B) maximize profits
C) learn the culture of the target market
D) increase monopoly power
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