If a company is seeking to enter a foreign market with a culture highly dissimilar to its own, it could consider using a strategy of licensing

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Quizplus · Accepted Answer

It is true because using licensing to a local firm in particular, provides a means to reduce the likelihood of cultural misunderstanding. Of course, the investing firm has to successfully negotiate with the licensee who is also likely to be from the dissimilar culture, but may have experience in dealing with multinational enterprises. Considerations such as the protection of intellectual property would also need to be taken into account.

If a Company Is Seeking to Enter a Foreign Market