Thomas Bernerd,Inc.Thomas Bernerd,Inc.,manufactures and sells reclining furniture.The company currently operates in the United States but wishes to expand overseas.The company managers have been contemplating the best way to enter the foreign market.At first,the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty.The managers recognized,however,that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market.As such,the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.After all the research was completed,the senior managers realized that they wanted to export their product.The managers decided that the transport carrier would notify them when the merchandise was shipped.This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Thomas Bernerd,Inc.Initially,the managers believed that ____ would be the best option for entering the foreign market.
A) exporting
B) creating a joint venture
C) licensing
D) establishing a strategic alliance
E) a merger

Question

Quizplus · Accepted Answer

The initial thought of the managers was to license their product and brand to a foreign company in exchange for a royalty. However, after further research, they decided to export their product instead. Therefore, the best choice is C, licensing, as it was the original idea of the managers.