Firms who wish to go global but who are not ready to assume significant risk may resort to ____________ in order to compete internationally.
A)licensing a local firm to manufacture the company's products
B)acquiring a local operation
C)government subsidized exporting programs
D)setting up a local factory

Question

Quizplus · Accepted Answer

Licensing a local firm to manufacture the company's products allows for the firm to enter international markets without bearing the burden of significant risk. The local firm typically bears the risk associated with manufacturing the products, while the company receives royalties or licensing fees for the use of their intellectual property. This method also requires minimal investment and allows for quick entry into new markets.

Firms Who Wish to Go Global but Who Are Not