Patriot Press wishes to sell its products in a foreign country.However,it also wishes to retain some input over its operation in that country for quality control reasons.Which of the following forms of business would be the best for Patriot Press?

Question

Quizplus · Accepted Answer

Creating a subsidiary in the foreign country would give Patriot Press the most control over its operations, as they would be creating a separate legal entity that they own and control. This would allow Patriot Press to maintain their quality control standards and ensure that their products are being sold in the way they want them to be sold. A foreign distributorship would give some control but not as much, as the distributor would be an independent entity selling the products. Direct sales would not provide any control over operations in the foreign country, as Patriot Press would need to rely on employees or contractors in the foreign country to handle the sales. A licensing agreement would give some control over the use of the Patriot Press brand and intellectual property, but would not provide any control over the day-to-day operations of the business.

Patriot Press Wishes to Sell Its Products in a Foreign