Executives at Smithson Soda, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Shanghai. Which of the following statements, if true, best supports this decision?
A) Smithson Soda recently sold one of its manufacturing facilities.
B) Smithson Soda is unfamiliar with the needs of Chinese consumers.
C) Smithson Soda uses an EMC to ship its products to a Chinese distributor.
D) Smithson Soda belongs to a Webb-Pomerene association to gather market research.

Question

Quizplus · Accepted Answer

Licensing allows Smithson Soda to leverage the local manufacturer's knowledge of the Chinese market, which is beneficial if they are unfamiliar with the needs of Chinese consumers.