When Krispy Kreme decided to expand its operation internationally, it chose to first make its doughnuts available in Canada to minimize its risk. In accordance with the policy of risk minimization, the company sold the rights to manufacture and sell its doughnuts to Canadians. What did Krispy Kreme use?
A)contract manufacturing
B)direct investment
C)importing
D)licensing

Question

Quizplus · Accepted Answer

Krispy Kreme sold the rights to manufacture and sell its doughnuts to Canadians, which is an example of licensing. This allowed them to expand their business internationally while minimizing their risk by entrusting the manufacturing and selling to a local company.

When Krispy Kreme Decided to Expand Its Operation Internationally, It