Suppose that there are significant costs associated with coordinating a subsidiary with the parent organization and assessing the market potential of a foreign country.If there are also significant tariffs, in this case ________________is likely to be the lowest-cost method of supplying goods abroad.

Question

Quizplus · Accepted Answer

Licensing allows a company to avoid the high costs of establishing and coordinating operations in a foreign country and the tariffs associated with exporting goods. It involves granting a foreign company the rights to produce and sell goods under the parent company's trademark, which can be a more cost-effective strategy when facing high tariffs and operational costs.

Suppose That There Are Significant Costs Associated with Coordinating a Subsidiary