While franchising facilitates rapid internationalization, compared to FDI, it affords the firm less control over its foreign operations.

Question

Quizplus · Accepted Answer

Franchising allows a firm to expand quickly into international markets by leveraging local partners who understand the market. However, this model grants the firm less direct control over its operations compared to a wholly owned subsidiary established through foreign direct investment (FDI), where the firm has full ownership and control.

While Franchising Facilitates Rapid Internationalization, Compared to FDI, It Affords