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Licensing is a popular method for companies looking to enter foreign markets without significant financial investment. In a licensing agreement, a company (the licensor) allows another company (the licensee) to use its intellectual property (such as a patent, brand name, or trade secret) in exchange for fees or royalties. A well-known example is Disney licensing its characters to various manufacturers around the world.
Question: What do you think are the main advantages and disadvantages of licensing for a company trying to expand internationally?
Feel free to share your thoughts or examples you’ve seen of this strategy in action!
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