Q. Read opening case on Starbucks, n answer subsequent questions:

Initially Starbucks expanded internationally by licensing its format to foreign operators. It soon became disenchanted with this strategy. Explain why?

Explain why do you think Starbucks has now elected to expand internationally primarily through local joint ventures, to whom it licenses its format, as opposed to a pure licensing strategy?

Illustrate what are advantages of a joint venture entry mode for Starbucks over entering through wholly owned subsidiaries? On occasion, Starbucks has chosen a wholly owned subsidiary to control its foreign expansion (e.g. in Britain also Thailand). Explain why?

Which theory of FDI best explains international expansion strategy adopted by Starbucks?