Interestingly,licensing and franchising typically leads to the penetration of international markets without significant capital investment abroad by the parent company.

Question

Quizplus · Accepted Answer

Licensing and franchising allow companies to expand into international markets without the need for significant capital investment because the local licensee or franchisee invests in the business and assumes most of the operating costs. This allows the parent company to focus on developing and marketing its products or services while collecting royalties or franchise fees from the local partner.

Interestingly,licensing and Franchising Typically Leads to the Penetration of International