Which of the following entry modes is a type of strategic alliance?
A) Licensing
B) Wholly owned subsidiary
C) Acquisition
D) Export

Question

Which of the following entry modes is a type of strategic alliance? 
A) Licensing 
B) Wholly owned subsidiary 
C) Acquisition 
D) Export

Quizplus · Accepted Answer

Licensing is a type of strategic alliance where a company allows another company to use its technology, patent, trademark, or other intellectual property for a fee or royalty. This helps the licensee company to access a new market, while the licensor earns revenue without having to invest in the foreign market. Thus, licensing is a cooperative strategy where both companies benefit from each other's resources and capabilities. Wholly owned subsidiary, acquisition, and export, on the other hand, are not types of strategic alliances.

Which of the Following Entry Modes Is a Type of Strategic