In terms of the various modes of entry into a foreign market,franchising is employed primarily by service firms,whereas licensing is pursued primarily by manufacturing firms.

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Franchising is a popular entry mode for service firms as it allows for the duplication of a successful business model in a new market with lower investment costs, while licensing is more commonly used by manufacturing firms to allow a foreign entity to use their intellectual property or technology in exchange for royalties or fees.

In Terms of the Various Modes of Entry into a Foreign