Describe Foreign Licensing and Foreign Franchising

question 23

Essay

Describe foreign licensing and foreign franchising. What are the similarities and the differences between them? What are their benefits and challenges? Give an example of at least one company for each.

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Definitions:

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Utility-Maximizing Rule

An economic principle stating that consumers allocate their income to purchase the combination of goods and services that maximizes their utility.

Consumption Mix

The combination of goods and services consumed by an individual or in an economy, reflecting preferences, income levels, and other factors.

Marginal Utilities

The increased happiness or advantage gained by a consumer from consuming an extra unit of a good or service.