A company can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system designed to ensure that the ________ operates according to the requirements of the licensor.
A) contract manufactures/licensor
B) franchising/franchisee
C) management contracts/firm
D) contract management/firm
E) joint venture/firm

Question

Quizplus · Accepted Answer

The described method is franchising, in which the franchisor offers a complete business model to the franchisee, who operates under the franchisor's guidelines and brand. This involves a form of licensing, but it goes beyond just the right to produce or sell a product or service. The franchisor typically specifies elements of the business such as location, training, marketing, and supply chain management.

A Company Can Enter a Foreign Market Through ________, Which