Domestic firms developing a global entry strategy might consider franchising; however,the disadvantages need to be considered.All of the following are disadvantages of franchising except

Question

Quizplus · Accepted Answer

The other options listed are all actual disadvantages of franchising, whereas option D is incorrect as franchising is not necessarily the riskiest way to enter a foreign market. Other entry modes like joint ventures or wholly-owned subsidiaries may carry a higher risk depending on various factors such as the level of investment required and the level of control the firm wants to maintain.

Domestic Firms Developing a Global Entry Strategy Might Consider Franchising;