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Domestic Firms Developing a Global Entry Strategy Might Consider Franchising

Question 69

Multiple Choice

Domestic firms developing a global entry strategy might consider franchising. Before deciding on franchising as a strategy however, firms must understand the disadvantages. All of the following are disadvantages of franchising except​


A) the franchisor has limited control over the market operations in the foreign country.
B) the franchisee might end up becoming a competitor under a different name.
C) franchising limits profit potential for the parent firm.
D) franchising is the riskiest way to enter a foreign market.
E) the franchisor has to split the profits with the franchisee.

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