more factories in different regions of India such as Madras in 1640, Bombay in 1661 and Calcultta in 1690. Despite the many influences on the India economy, the fact that EIC being a British company meant that there were liabilities of foreigness to face. One of the biggest liabilities was surrounding regulations of the Indian Empire. The Company found difficulties to maximise revenue under the control of its partner. The core
“Assess the merits and demerits of international licensing as a mode of entry into new markets” Disney does not have to produce t-shirts, USB sticks and even waffles with Mickey Mouse’s happy face on it. Instead, it can license the right to use its famous character to different companies around the globe and enjoy the hefty royalties, which in 2010 totaled 28.6 billion dollars (Rorie, 2011). Does it then mean that licensing as a mode of entry into foreign markets is the best option available?
Chapter 11 Multiple Choice 1. Ikea, the Swedish furniture chain, insists that all its stores carry the basic product line with little room for adaptation to local tastes. If research of the U.S. market showed that Americans preferred larger beds than their Swedish counterparts, which of the following strategies would be advisable to Ikea? a. standardization. b. new product development. c. adaptation. d. withdraw from market. e. lower