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The Contractual Entry Mode is one option for a company when entering a new market abroad. Licensing and Franchising are the most used options for this category, and both have advantages and disadvantages a company needs to understand when deciding on its strategy.
For this assignment:
1. First, explain what licensing is and the advantages and disadvantages of this entry mode. Cite at least two examples and why a company would use licensing as a strategy.
2. Franchising is another entry mode; explain this mode and list at least two advantages and disadvantages for both the franchisee and franchisor—list at least two examples and why a company would choose this strategy vs. another.
3. Would legal or regulatory issues within a country affect your decision to choose one of these entry modes? Explain?
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