Franchising,a mode of entry into foreign markets,is employed primarily by _____ firms.
A) service
B) manufacturing
C) online
D) high-technology
E) primary

Question

Quizplus · Accepted Answer

Franchising is a popular mode of entry for service-based firms such as restaurants, hotels, and retail stores. This is because franchising allows these firms to expand their brand and business model without having to invest in significant infrastructure or resources in the foreign market. On the other hand, manufacturing, high-technology, and primary firms are more likely to use other modes of entry, such as joint ventures or foreign direct investment, as they require more significant investments and control over operations. Online firms can also use franchising as a mode of entry, but it is not limited to this method, and they may also use e-commerce platforms to enter foreign markets.

Franchising,a Mode of Entry into Foreign Markets,is Employed Primarily by _____