Read the chapter 12 of textbook “The Legal and Regulatory Environment of Business 17th – Marisa Anne Pagnatt”, answer the questions.
1. Licenses or Franchises (200-350 words)
a) How should a licensor protect its investment in a foreign country?
b) Is licensing a less risky approach for the seller than direct foreign investment?
2. (400-600 words)
XYZ Company is a U.S. firm that makes communication software used in a variety of consumer goods manufactured and sold in the United States. XYZ recently learned that one of the manufacturing firms it supplies, ABC Company, is exporting finished goods to a country where U.S. goods and component parts are prohibited because of numerous conflicts with the U.S. government.
- Does XYZ have any moral or legal responsibility in this case?
- How should XYZ protect itself under these circumstances?
- Should American business practices be impacted by conflicts between governments?