Bean's Crazy, a coffee shop, wants to expand quickly into the international marketplace with little risk to its capital holdings and avoid the import restrictions that some governments impose. Which of the following strategies should be adopted?
A) Foreign outsourcing
B) Foreign franchising
C) Foreign direct investment
D) Exporting

Question

Quizplus · Accepted Answer

Franchising allows Bean's Crazy to expand into the international marketplace quickly without risking its capital holdings. In addition, it avoids import restrictions from foreign governments since they will be dealing with locally owned franchises. This strategy allows for the company to expand its brand identity quickly while also minimizing capital and legal risks.

Bean's Crazy, a Coffee Shop, Wants to Expand Quickly into the International