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    What advantages are similar between licensing, exporting, joint ventures, and wholly owned subsidiaries?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:56 pm ad1c9bdddf


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    1. What advantages are similar between licensing, exporting, joint ventures, and wholly owned subsidiaries?

    It seems that the two main advantages that are similar has to do with having more control and access to new markets and distribution channels.

    The way I approached this question is to locate the similarities of each, and then looked for similarities across the four concepts. So read through the following information to see if you can spot other similarities as well. I highlighted the advantages in yellow for easy referencing:

    1. Licensing?

    Licensing allows many businesses to enter international markets through creative use of intellectual property rights in partnership with other companies. Intellectual property -- represented by trademarks, copyrights, and patents -- includes a variety of separate rights. For example, a patent contains the right to produce a product exclusively, but also the right to allow others to produce it as well. If the holder of intellectual property rights grants another party the right to manufacture or merchandise products covered by that intellectual property, then the holder gives the other party a "license" for that purpose.
    Example: Almost any stuffed animal representing a known fictional character uses a license. Tags on such items will include language identifying the manufacturer and the source of the license.
    International licensing simply applies this principle between parties from different countries. The system allows intellectual property holders to enter new markets without the expense of starting independent production. Production in another country allows the product to enter the market without payment of customs duties, and licensors may benefit from lower production costs. For licensees, use of another party's intellectual property may help boost business because of product recognition or innovation. Products offered for production under license may be a ...

    Solution Summary

    The similar advantages across these types of business ventures were explored: licensing, exporting, joint ventures, and wholly owned subsidiaries.