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3. Indicate which of the five methods of international business (International trade, Licensing, Franchising, Joint Ventures, Acquisition of existing operations, and Establishing New Foreign Subsidiaries)
3. Indicate which of the five methods of international business (International trade, Licensing, Franchising, Joint Ventures, Acquisition of existing operations, and Establishing New Foreign Subsidiaries) is being utilized in the following situations: Situation Method Starbucks allows other coffee shops in Brazil to sell their products under arrangements for a profit sharing percentage. Starbucks labels and brand are clearly present, but the coffee shop is independently operated with their own unique name and brand. Ford motor enters into an agreement with Tata motors of India to jointly manufacture a stripped down Ford Fiesta for distribution in the India and other emerging markets. Caterpillar enters into an agreement with ArcelorMittal steel in China to provide raw steel for delivery in six months. McDonalds opens a new restaurant in Germany. The store is owned by McDonalds Europe, Inc. a wholly owned entity of McDonalds, Inc. Apple acquires Foxconn, a company which has assembled Apple iPhones under contract for many years. Foxconn operates in many countries and originates from Malaysia. Red Robin expands to Guatemala under an agreement with a local restaurateur (Bueno Comida, Inc.) who will own the land, building and run operations. Red Robin signage, branding, menu and dcor will match other Red Robins in the U.S. Red Robin will receive a 6% of gross sales royalty and an additional 2% of gross sales for marketing and management expertise. Red Robin will serve as the exclusive supplier and may take over operations under a lease agreement for facilities if Bueno Comida, Inc. does not achieve certain revenue targets within 10 years. Kelly Bean of U.S. agrees to sell up to 100,000 pounds of soybeans on a forward contract at 8 Eurodollars per hundred to an Irish wholesaler over the next six months. Terms are FOD Bantry Bay, Ireland
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