Licensing is an especially useful strategy if the brand name is well known but the firm does not have the funds to finance its entering the country directly.

Question

Quizplus · Accepted Answer

Licensing involves allowing another firm in the foreign country to use the brand name and products of the original firm in exchange for royalties or other fees. This can be a cost-effective way for the original firm to expand their business in a foreign market without having to invest significant funds upfront. Therefore, the statement is true.

Licensing Is an Especially Useful Strategy If the Brand Name