If intellectual property rights in an emerging economy are not well-protected, the number of firms in the industry is rapidly growing, and the need for global integration is high, ____ is the preferred entry mode.
A) exporting
B) strategic alliance
C) a joint venture or wholly owned subsidiary
D) licensing

Question

Quizplus · Accepted Answer

Joint venture or wholly owned subsidiary is the preferred entry mode under these circumstances. This is because these modes of entry provide greater control over intellectual property and technology, which reduces the risk of infringement and theft. Additionally, joint ventures and wholly owned subsidiaries also provide greater control over operations and management, which is important in emerging markets where business practices may differ from those in mature economies.

If Intellectual Property Rights in an Emerging Economy Are Not