If wholly owned subsidiaries are prohibited by foreign governments, licensing may be the only method of market entry if management wishes to exercise a large amount of control over its products in the foreign market.

Question

Quizplus · Accepted Answer

Licensing typically involves less control over the product compared to wholly owned subsidiaries. Joint ventures or strategic alliances might be alternatives that allow for more control than licensing.

If Wholly Owned Subsidiaries Are Prohibited by Foreign Governments, Licensing