Franchising is attractive to the governments of recipient countries because the outflow of foreign exchange is low.

Question

Quizplus · Accepted Answer

Franchising is attractive to the governments of recipient countries because it allows for foreign companies to enter into their market without significant capital investment, meaning that the outflow of foreign exchange is relatively low compared to other forms of foreign investment such as wholly-owned subsidiaries. By limiting the outflow of foreign exchange, governments can help to maintain a stable balance of payments and support their domestic economy.

Franchising Is Attractive to the Governments of Recipient Countries Because