Author Question: Wonder Cat Licensing (Scenario)Wonder Catis a popular, new cartoon series created by the U.S-based ... (Read 90 times)

LaDunn · **on:** Feb 15, 2021

Wonder Cat Licensing (Scenario)
Wonder Cat is a popular, new cartoon series created by the U.S-based All Cartoon Channel (ACC). Currently, the only Wonder Cat item available for sale are shirts that are sold exclusively through the ACC Web site. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions.

Which of the following statements most likely supports an ACC decision to enter into a licensing agreement with the Chinese firm?
◦ Royalties from toys and apparel would be initially minimal.
◦ The Wonder Cat brand's products could be easily counterfeited in other markets except in the Chinese markets.
◦ The Chinese government restricts complete ownership of local operations by foreign firms.
◦ China exclusively opts for high-control strategies such as FDI.

ambernicolefink · **Reply #1 on:** Feb 15, 2021

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