Which of the following statements is true of the international business strategy of licensing?
A) It allows a firm to enter a foreign market with relatively little risk.
B) It provides a firm with its own company-owned facilities in a foreign country.
C) It requires a huge outlay of capital.
D) It does not provide market exposure to a firm.

Question

Quizplus · Accepted Answer

Licensing allows a firm to enter a foreign market by granting a foreign company the rights to produce and sell its product, thereby reducing the risk and investment required compared to establishing company-owned facilities or making a large capital investment.

Which of the Following Statements Is True of the International