A popular fast-food chain decides to enter a foreign market by allowing a local food chain to produce and market its products in return for a fee.This type of entry strategy is known as:

Question

Quizplus · Accepted Answer

Franchising is a type of entry strategy where a company allows a local business (the franchisee) to use its name, products, and marketing in return for a fee. This allows the company to expand into a foreign market without direct investment or ownership, and the local franchisee benefits from the established brand reputation and support from the company.

A Popular Fast-Food Chain Decides to Enter a Foreign Market