A Mini project report submitted in partial fulfillment of the requirements for the

Award of the Degree of 4th semesters

MASTER OF BUSINESS ADMINISTRATION OF
BANGALORE UNIVERSITY

Submitted by
Name: PRASANNA KUMAR M S
Reg no: 20UHCMD079
Under the Guidance of
Faculty Name: Mohammad Yusuf M
Assistance professor
Department of Manager
EAST WEST COLLAGE OF MANAGEMENT
No.63,off Magadi Road, Vishwaneedam Post, Bharath Nagar,
Bangalore-560091
Bangalore University
2022-2023
 STUDENT DECLARATION

I, PRASANNA KUMAR M S hereby declare that the main project report entitled “Exporting and licensing in
International Marketing” with reference to the subject “ International Marketing Strategy” prepared by me under
the guidance of Mr. Mohammad Yusuf M faculty of MBA Department, EWCM. I also declare that this mini project
work is towards the partial fulfillment of the University regulation for the degree of master of Business Administration
by collage. I further declare that this project is based on the original study undertaken by me and has not been
submitted for the award of any degree from any other University/Institution.

Place: Bangalore Dr.D. Sandhya

Date: HOD
Prasanna Kumar M S Faculty Name: Mr. Mohammad Yusuf M

Signature
 Topic: Exporting and licensing in International Marketing

Introduction of Exporting and Licensing International marketing

The word 'International Marketing' is defined as the exchange of goods and services across national borders to
meet the requirements of the customers. It includes customer analysis in foreign countries and identifying the target
market.

Licensing gives a licensee certain rights or resources to manufacture and/or market a certain product in a host country.
Licensing. Licensing is a business arrangement in which one company gives another company permission to
manufacture its product for a specified payment.

Exporting is defined as the sale of products and services in foreign countries that are sourced or made in the
home country. Importing is the flipside of exporting. Importing refers to buying goods and services from foreign
sources and bringing them back into the home country.
Features of Exporting and licensing in International marketing
Exporting
1) Systematic Process.
2) Customer Focus.
3) Trade Barriers.
4) Trading Blocs..
5) Three-faced Competition.
6) Documentation.
7) Dominance of Multinational Corporations.
8) Diverse Customs and Traditions.
Licensing
The Licensing shall be a strictly permissive right that occurs through permission, express or implied, and not
by adverse exercise or otherwise. It only legalizes a certain act that would otherwise be unlawful and does not
grant any interest in the property itself in or upon or over which such an act is carried out.
Objective of Exporting and licensing in International Marketing
Exporting
1) Facilitating the selling of products to countries that desperately need such goods
2) Expanding the marketplace for goods by producing them on an outsized scale.
3) Earning exchange through exports
4) Helping a rustic increase the value
5) Creating employment opportunities in a country by promoting export-oriented and export-related enterprises.
6) Generating revenue for the govt within the sort of customs and excise duties.
7) Promoting mutual affection and co-operation among the nations.
8) Achieving optimum utilization of resources by large scale production of products
Licensing
An international business licensing agreement involves two firms from different countries, with the licensee
receiving the rights or resources to manufacture in the foreign country. Rights or resources may include patents,
copyrights, technology, managerial skills, or other factors necessary to manufacture the good.
Needs of Exporting and licensing in In international Marketing
Exporting
Entering export markets can boost turnover and improve innovation as firms develop new products for
particular markets. It can also reduce exposure to risk, by distributing sales across various countries or regions.

Licensing
Ensuring your company is properly licensed helps to bring protection to yourself, your employees and your
customers. Having the correct licence will ensure your personal assets are protected in case of a lawsuit as well as
providing protection for you if your business is damaged.
Advantage and Disadvantage of Exporting in International marketing
Advantages of exporting
•You could significantly expand your markets, leaving you less dependent on any single one.
•Greater production can lead to larger economies of scale and better margins.
•Your research and development budget could work harder as you can change existing products to suit new markets.

Disadvantages of exporting
•Unless you're careful, you can lose focus on your home markets and existing customers.
•Your administration costs may rise as you may have to deal with export regulations when trading outside the
European Union.
•You will be managing more remote relationships, sometimes thousands of miles away.
•In overseas markets, you may lose some of the control that you are used to at home.
•You will need to think of your new market differently to the home market. They will be different customers with
their own reasons for buying your products.
Advantage and Disadvantage of Licensing in International marketing
Advantage
1) It creates an opportunity for passive income.
2) It creates new business opportunities.
3) It reduces risks for both parties.
4) It creates an easier entry into foreign markets.
5) It creates self-employment opportunities.
6) It offers the freedom to develop a unique marketing approach.

Disadvantage
1) It creates a dependency upon the licensor.
2) It creates added competition in the marketplace.
3) It is offered for a limited time.
4) It could damage the reputation of both parties.
5) It is not a guarantee of revenues.
6) It takes time for royalty payments to arrive.
 Recent trends of Licensing and Exporting in International marketing

Exporting
In 2021, annual merchandise exports and imports for the G20 expanded by 25.9% and 26.1%, respectively,
with values around 16% above their 2019 levels. While high commodity prices explain part of the increase,
stimulus packages also played a role by spurring the demand for traded goods.

Licensing
The year 2021 became a strange footnote in the historic milestone of 2020, changing consumer behavior, workplace
culture, community needs and life in general as we know it. Because of this, the brand licensing industry adapted
and shifted to meet changing demands, which expedited existing trends and created entirely new ones to present a
list of exciting trends surrounding brand extension and licensed consumer products.
License Global looks at just some of the top trends in the licensing industry that will grow, evolve and shape 2022
as we know it.
Conclusion Of Exporting And Licensing in international marketing

This chapter explains competition in international markets. Executives must consider the benefits and risks of
competing internationally when making decisions about whether to expand overseas. Executives also need to
determine the likelihood that their firms will succeed when they compete in international markets by examining
demand conditions, factor conditions, related and supporting industries, and strategy, structure, and rivalry among its
domestic competitors. When a firm does venture overseas, a decision must be made about whether its international
strategy will be multidomestic, global, or transnational. Finally, when leading a firm to enter a new market, executives
can choose to manage the operation via exporting, creating a wholly owned subsidiary, franchising, licensing, and
creating a joint venture or strategic alliance.
Bibliography

https://www.tutorialspoint.com/international_marketing/international_marketing_introduction.htm
https://www.bms.co.in/define-international-marketing-explain-the-features-of-international-marketing/
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-exporting
https://brandongaille.com/14-licensing-advantages-and-disadvantages/
https://www.oecd.org/newsroom/international-trade-statistics-trends-in-fourth-quarter-
2021.htmhttps://www.licenseglobal.com/trends-insights/brand-licensing-trends-will-define-2022
https://saylordotorg.github.io/text_mastering-strategic-management/s11-05-conclusion.html
Thank you