Which form of entry into a global market makes a firm vulnerable to harm to its name or reputation?
A)direct exporting
B)indirect exporting
C)licensing
D)contract manufacturing
E)joint ventures

Question

Quizplus · Accepted Answer

Licensing involves a company granting rights to another company to use its intellectual property, such as trademarks or technology, for a fee. While it allows the licensor to enter a global market without the high costs and risks of direct investment, it also makes the licensor vulnerable to harm to its name or reputation as it has limited control over how the licensee uses its intellectual property. Therefore, licensing can be risky in terms of protecting a firm's brand and reputation.

Which Form of Entry into a Global Market Makes a Firm