A firm may decide to compete in a global market by __________ the right to manufacture its product or use its trademark to a foreign company for a fee.
A) Franchising
B) Licensing
C) Exporting
D) Using foreign direct investment

Question

Quizplus · Accepted Answer

Licensing involves granting another company the right to use a firm's trademark or manufacture its product for a fee. This is a common method of entering foreign markets because it allows the firm to expand without assuming the risks of establishing operations in a new country.

A Firm May Decide to Compete in a Global Market