From a recipient-country view,franchising requires considerable outflow of foreign exchange.

Question

Quizplus · Accepted Answer

Franchising actually brings in foreign exchange to the recipient country, as the franchisor (foreign company) will typically require royalty payments and may also require the purchase of goods or equipment from the franchisor's country. Therefore, franchising can actually be a source of foreign exchange inflow for the recipient country.

From a Recipient-Country View,franchising Requires Considerable Outflow of Foreign Exchange