11. (p. 448) A sales company is established to market goods or services, not to produce them.
12. (p. 448) Turnkey projects export technology, management expertise, and capital equipment.
13. (p. 448) Producing a factory ready to operate is similar to producing a “turnkey project.”
14. (p. 449) Licensing refers to a contractual agreement in which the licensor grants access to its patents, trade secrets, or technology for a fee paid by the licensee.
15. (p. 449) The licensee generally pays a fix sum when signing a license agreement and then royalties of five to seven percent of sales over the life of the contract.
16. (p. 449) Some firms do not grant licenses to other firms because of the fear of having a strong competitor upon the expiration of the license.
17. (p. 451) A management contract is used only by manufacturing companies to earn income by providing expertise for a fee.
18. (p. 452) In the year 2005, more money was spent in acquiring established businesses than in setting up new ones.
19. (p. 452) Lack of control is one of the strongest arguments against a joint venture.
20. (p. 452) In a joint venture, a management contract is often used as a non-ownership-based control mechanism by any of the firms when an agreement can not be reached.
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