Which of the following can be used to overcome quality control problems associated with franchising as a mode of entry into foreign markets?
A) Licensing agreements
B) Subsidiaries
C) Turnkey projects
D) Export licenses
E) Cross-licensing agreements

Question

Quizplus · Accepted Answer

Franchising can lead to quality control problems because the franchisor has limited control over the franchisee's operations. Subsidiaries, on the other hand, allow the parent company to have complete control over the foreign operations and ensure consistent quality standards. Licensing agreements, turnkey projects, export licenses, and cross-licensing agreements do not necessarily address quality control problems associated with franchising.

Which of the Following Can Be Used to Overcome Quality