The advantages of using a franchising strategy to pursue opportunities in foreign markets include
A)having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support and monitor franchisees.
B)being particularly well-suited to the global expansion efforts of companies with multidomestic strategies.
C)allowing a company to achieve scale economies.
D)being well suited to companies who employ cross-border transfer strategies.
E)being well suited to the global expansion efforts of manufacturers.

Question

Quizplus · Accepted Answer

Using a franchising strategy in foreign markets allows a company to leverage its resources by having franchisees bear most of the costs and risks of establishing and running foreign locations, while the franchisor focuses on recruiting, training, supporting, and monitoring franchisees. This enables the company to expand quickly and efficiently with fewer financial and operational resources.

The Advantages of Using a Franchising Strategy to Pursue Opportunities