When Disney Relied on Licensing Agreements with the Oriental Land

question 16

Multiple Choice

When Disney relied on licensing agreements with the Oriental Land Company to open its first foreign theme park, Tokyo Disneyland,

• A)Disney was able to meet the challenge of localizing its product offerings in Japan, leading to a low-cost advantage.
• B)Japanese consumer buying habits and demographics no longer posed a challenge for Disney.
• C)Disney no longer needed to contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.
• D)Its licensing partner, the Oriental Land Company reaped the windfall, because the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain.
• E)It was Disney, not the Oriental Land Company, that reaped the windfall because of learning curve effects.

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Drawer

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A system within a business that oversees its operations and financial processes to ensure accuracy and compliance.

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A significant amount of money placed in a financial institution or investment, often referring to a sizable transaction that impacts financial statements.