Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

Question

Quizplus · Accepted Answer

Licensing and exporting typically involve fewer financial, legal, and operational risks compared to other market entry methods such as foreign direct investment or joint ventures. Licensing allows a company to grant permission to a foreign entity to use their intellectual property or technology, while exporting involves simply selling products to customers in overseas markets. Although there are still some risks involved, these methods generally require less investment and offer more control over the company's operations compared to other market entry methods.

Licensing and Exporting Can Be Considered Relatively Low-Risk Methods of Entering