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Describe the Advantages and Disadvantages of Foreign Franchising

question 139

Essay

Describe the advantages and disadvantages of foreign franchising. Give examples of companies currently franchising abroad to support your answer.


Definitions:

Overreward Inequity

A situation where an individual perceives they are getting more rewards than they believe they deserve compared to others.

Frustration-Regression

A psychological phenomenon observed in goal-oriented behavior, where an individual facing obstacles regresses to less mature behaviors or simpler strategies in order to deal with frustration.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in distribution of resources within interpersonal relationships, leading to satisfaction or dissatisfaction.

Needs Hierarchy Theory

A motivational theory proposing that humans have a hierarchy of five needs, ranging from basic physiological needs to self-actualization, which influence behavior.

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