Companies may move from licensing or joint venture strategies to ownership in order to achieve faster expansion in a market,greater control,and\or higher profits.

Question

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Companies often transition to ownership strategies such as wholly owned subsidiaries to gain more control over operations, ensure faster market penetration, and potentially secure higher profits by eliminating the need to share revenues or profits with a local partner, as is common in licensing or joint venture arrangements.

Companies May Move from Licensing or Joint Venture Strategies to Ownership