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

Question

Quizplus · Accepted Answer

Franchising is a popular mode of entry for services firms because it allows them to expand their business without making a significant investment in resources or infrastructure. They can use the local expertise of the franchisee to navigate the local market and cultural nuances. Some manufacturing companies also use franchising but on a much smaller scale. Online outfits, high-technology companies, and primary industries typically use other modes of entry such as licensing, joint ventures, or direct investment.

Franchising as a Mode of Entry into Foreign Markets Is