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.
Correct Answer:
Verified
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