Which of the following strategies for competing in the global markets involves the lowest risk and offers the lowest profit potential?
A)Licensing
B)A joint venture
C)A foreign subsidiary
D)Contract manufacturing

Question

Quizplus · Accepted Answer

Licensing involves granting the rights to use a company's intellectual property or technology to a foreign firm in exchange for royalty payments. It requires minimal investment and effort from the licensor and carries a low risk as the licensee takes on the majority of the responsibilities and costs. However, licensing also offers limited profit potential compared to other strategies like foreign subsidiaries, joint ventures, or contract manufacturing.

Which of the Following Strategies for Competing in the Global