Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting, (2) __________, (3) joint venture, and (4) direct investment.
A)macrofinancing
B)microfinancing
C)franchising
D)licensing
E)collateral venture

Question

Quizplus · Accepted Answer

Licensing allows a company to grant permission to a foreign company to use its intellectual property, such as trademarks, patents, or copyrights, in exchange for a fee. This is a low-risk market entry option, as the licensee assumes most of the costs and risks associated with producing and marketing the product or service in the foreign market. It also allows the licensor to gain access to new markets without having to invest significant amounts of capital or resources.

Once a Company Has Decided to Enter the Global Marketplace