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olga2289 [7]
3 years ago
10

Erna Boogard bakes cakes for a living. Her recipes were so popular in The Netherlands that her company has grown dramatically. S

he has just sold the right to manufacture her cakes to to firms in Canada and the US. Which of the following ways of entering into the global marketplace is Erna's company using?
a.Licensing

b. Franchising

c. Exporting

d. Joint Ventures
Business
1 answer:
bekas [8.4K]3 years ago
3 0

Answer:

It is Franchising (B)

Explanation:

Option (A) False.

Licensing is  contractual  transaction  where  the  company (licensor) offers  some  proprietary  assets   to  foreign company (licensee) in exchange for royalty fees .

Licensing  is considered a low involvement and low-control entry strategy, since it does not necessarily entail equity participation, and because control over operations and strategy is granted to the licensee in exchange for a lump-sum payment,   and  a  commitment  to  abide  by  any  terms  set out  in  the  licensing  contract.

Option (B) True.

A franchise agreement is a contractual arrangement between two independent firms, whereby the franchisee pays the  franchisor  for  the  right  to  sell  the  franchisor's  product  and/or  the  right  to  use  the  franchisor's  trademark  at  a given place and for a certain period  of time.

Franchisors  typically   offer   managerial  assistance and exercises  substantial  control  over the franchisee.

Option (C) False

Exporting- here the  company  becomes  directly  involved  in  marketing  its  products  in  foreign  markets.  Although  the associated cost  and  risks  are  greater,  so are the profits too ,all things being equal.

Option (D) False

This is when two or more independent companies create a separate entity but still still maintain their former entity . As a penetration strategy, it does not only reduced risks but also decreases individual involvement.

It can also be used to eliminate risk of entry barriers for a new entrant in an existing market.

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A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an un
nlexa [21]

Answer:

Differentiation.

Explanation:

The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.

The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.

Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.

Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.

3 0
3 years ago
Suppose that Larimer Company sells a product for $24. Unit costs are as follows:
MrMuchimi

Answer:

Unitary variable cost= $8.08

Contribution margin= $15.92

Explanation:

Giving the following information:

Direct materials $4.98

Direct labor 2.10

Variable factory overhead 1.00

The variable cost per unit is the sum of direct material, direct labor, and variable overhead.

Unitary variable cost= 4.98 + 2.1 + 1= $8.08

The contribution margin per unit is the difference between the selling price and the unitary variable cost:

Contribution margin= 24 - 8.08= $15.92

6 0
3 years ago
A company has issued 100,000 options of which 50,000 are "in the money at an average exercise price of $15.00. The Company’s sto
nikitadnepr [17]

Answer:

20,000 shares

Explanation:

The computation of given question is shown below:-

Dilutive number of shares:-

Proceeds from the options issue = 50,000 × $15

= $750,000

Shares issued = 50,000

Treasury shares purchased from proceeds of the options

= ($750,000 ÷ $25)

= 30,000

Dilutive number of shares outstanding = Shares issued - Shares purchased back

50,000 - 30,000

= 20,000 shares

8 0
3 years ago
. Inflation, recession, and high interest rates are economic events that are best characterized as being a. systematic risk fact
Karo-lina-s [1.5K]

Answer:

The correct answer is letter "C": among the factors that are responsible for market risk.

Explanation:

Market risk is a chance that the value of an investment will decrease due to a factor that affects all investments across the market. Investors always assume there could be a certain level of risk. There is always a chance that their investments will not meet their expected returns.  

Examples of factors of market risk are <em>changes in equity prices, fluctuations in the interest rate, changes in foreign exchange rates, inflation </em>or <em>a recession</em>.

8 0
3 years ago
One advantage of a fixed interest rate over a variable rate is that a fixed rate
koban [17]

Fixed rates have the advantage over variable rates in that debt may be readily repaid within the allotted time. Hence, choice B

<h3>What is a fixed and variable rate?</h3>

Loans with fixed interest rates have an interest rate that will not change throughout the loan's term, regardless of changes in market interest rates. A loan with a variable interest rate is one in which the interest rate imposed on the outstanding balance changes in accordance with changes in the market interest rates.

Therefore, the benefit of fixed rate versus variable rate is that it enables speedier debt repayment.

Learn more about interest rates:

brainly.com/question/14445709

#SPJ1

6 0
2 years ago
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