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Detailed discussion 
– government/top management support
– develop trust between adviser and receiver
– training required/planned
↓
Implementation of project – training of local workforce
– construction and installation of specialist plant
↓
Project completion 
– greater participation by recipient
 
– training of local managers and supervisors completed
↓
Evaluation of project 
– report and necessary follow-up
Figure 13.3 Model of effective transfer
Licensing and franchising
Licensing and franchising are two other main methods whereby technology, 
skills and knowledge are less directly transferred.
Licensing
Licensing is the practice whereby an organization or company (the licensor) 
owns intangible property rights, for example, patents, trademarks, know-
how and copyright, and agrees to sell to another organization/company (the 
licensee) the right to use these for a specified period of time in return for a 
fee/royalty. The agreement may be for an exclusive arrangement whereby 
no other organization or company is permitted to have such rights for a 
specified geographical region for a specified period of time. The licensor 
and the licensee rely on each other to maintain quality and to promote the 
brand’s image.
Licensing is often a less risky method of international expansion for the 
licensor than other methods of entry into the marketplace. There are certain 
advantages in licensing as the main requirement of the licensor is to provide 
technical information and assistance, whereas the licensee is responsible for 
funding the start- up of operations and the costs of development. There is, 
however, the risk of the licensor’s technology and know- how being illegally 

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256 Cross-Cultural Communication
acquired by competitors; in addition, the licensee may attempt to expand 
operations within the existing territory of the licensor.