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LICENCE, DESIGN AND MARKETING EXPERIENCE RELATING TO A PRODUCT OR PROCESS Abstract: Contracting a licence is buying or selling contract of technology, design and marketing experience relating to a product or process, and involves the contracting of knowledge and know-how. The granting of an international licence takes place when a company provides, in return for a fee or royalties, technology needed by another firm to run business operations on a foreign market. When in this form, the granting of the licence requires at least one of the following items: a brand name; operating experience; manufacturing technology; access to patents and trade secrets/industrial. Company that grants the licence get access on a foreign market with very low investment and, in many cases, the benefits of investment and market knowledge of a competent local firms. The company that received the licence get access to foreign technology, with a very small investment. There are several very obvious advantages of activity under the license on international markets. The granting of a licence can improve cash flow situation for the company that attaches. Because the license on technology allows companies to bring products to market faster, the company enjoys early advantage of a positive balance of cash flow. In addition, obtaining a license means lower development costs. The licensed activity may mean fewer profits in the long run. Immediate benefits of easy access to new technology, lower costs and the development of an early cash flow are attractive advantages of contracting a licence. Keywords: IAS 41, creative accounting, fair value, accounting treatment Journal: Constatin Brancusi University of Targu Jiu Annals - Economy Series

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  • LIVIU NEAMTU Author-Workplace-Name: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, ROMANIA
  • ADINA CLAUDIA NEAMTU Author-Workplace-Name: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, ROMANIA

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  • LIVIU NEAMTU Author-Workplace-Name: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, ROMANIA & ADINA CLAUDIA NEAMTU Author-Workplace-Name: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, ROMANIA, 2013. "LICENCE, DESIGN AND MARKETING EXPERIENCE RELATING TO A PRODUCT OR PROCESS Abstract: Contracting a licence is buying or selling contract of technology, design and marketing experience relating to a pro," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 99-102, October.
    • Handle: RePEc:cbu:jrnlec:y:2013:v:5:p:99-102
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    1. Warren J Bilkey, 1978. "An Attempted Integration of the Literature on the Export Behavior of Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(1), pages 33-46, March.
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