general
What do global trade and international franchising have in common?
Both involve business activities across national borders.
What is the term for selling products to other countries?
Export.
Who is the franchisor?
The owner of the brand and business system.
Which strategy is mainly focused on selling goods and services internationally?
Global trade.
What is the term for buying products from other countries?
import
Who is the franchisee?
The local business owner who operates the franchise.
Which strategy involves transferring a business model and brand to a foreign partner?
International franchising.
What is a tariff?
A tax on imported goods.
What is a royalty fee?
A regular payment from the franchisee to the franchisor for using the brand.
Why is local market knowledge important in both global trade and franchising?
It helps companies understand consumer preferences, regulations, and competition.
What does comparative advantage mean?
When a country can produce a good at a lower opportunity cost than another country.
What is master franchising?
A model where a local partner can open multiple franchises in a region.
Name one international organization that supports global trade.
The World Trade Organization (WTO).
Name one benefit of global trade.
Economic growth or access to a variety of goods.
Why is cultural adaptation important in franchising?
Because it helps match products and services to local consumer preferences and avoid failure.