Which of the following is an advantage of franchising as a mode of entry into foreign markets?
A)The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.
B)The franchiser is allowed to take profits out of one country to support competitive attacks in another.
C)The franchiser can easily maintain uniform quality across many geographically dispersed franchisees.
D)Manufacturing concerns can be effectively coordinated across adjacent processes.
E)The franchiser can support its short-term interests in a country with an unstable economy.

Question

Quizplus · Accepted Answer

Franchising allows the franchiser to enter a foreign market without bearing many of the costs and risks associated with setting up operations on its own. The franchisee invests the capital necessary to establish and operate the business in exchange for the right to use the franchiser's trademark, products, and business format.

Which of the Following Is an Advantage of Franchising as a Mode