For a fee, Green Health Supplements, Inc. (GHS) allowed another company in Britain to use its formula for a men's tonic. In this case, GHS is using which of the following market entry strategies?
A) Exporting
B) Licensing and franchising
C) Joint venture
D) Wholly owned subsidiaries

Question

For a fee, Green Health Supplements, Inc. (GHS) allowed another company in Britain to use its formula for a men's tonic. In this case, GHS is using which of the following market entry strategies?
A) Exporting
B) Licensing and franchising
C) Joint venture
D) Wholly owned subsidiaries

Quizplus · Accepted Answer

Licensing and franchising is the market entry strategy in which a company allows another company to use its product or formula for a fee or royalty. In this case, GHS allowed a company in Britain to use their formula for a men's tonic in exchange for a fee, which falls under licensing and franchising. Exporting involves selling a product in a foreign market, joint venture involves two or more companies forming a partnership to enter a foreign market, and wholly owned subsidiaries involve the company setting up its own operations in a foreign market. None of these strategies apply to the scenario given.

For a Fee, Green Health Supplements, Inc