If a company lacks the capital to develop operations overseas and/or they are unwilling to commit resources to an unfamiliar or politically volatile foreign market, which of the following entry options is the most viable?
A) International licensing
B) Setting up a wholly owned subsidiary
C) Joint venture
D) Franchising
E) Global standardization

Question

Quizplus · Accepted Answer

International licensing allows companies to generate revenue and expand their brand without the need for significant upfront investment or long-term commitment in a foreign market. It involves granting permission to a foreign company to use the licensor's intellectual property, such as patents, trademarks, and copyrights, in exchange for royalties or fees. This option provides an easy way to enter a foreign market without committing significant resources.

If a Company Lacks the Capital to Develop Operations Overseas