Licensing the rights to manufacture or market a product or service in an option for internationalization that does not involve the setting up of directly owned subsidiaries.

Question

Quizplus · Accepted Answer

Licensing allows a company to expand internationally by granting a foreign company the rights to produce or sell its products or services, without the need to establish its own subsidiaries in the foreign market, thus avoiding the complexities and investments associated with setting up directly owned operations abroad.

Licensing the Rights to Manufacture or Market a Product or Service