Identify and define the three ways in which companies can enter ...

[melly21297]

Identify and define the three ways in which companies can enter global markets without making substantial investments.
 
  What will be an ideal response?

Question 2

A multinational corporation is based in one country and produces goods or provides services in one or more foreign countries.
 
  Indicate whether this statement is true or false.

[honnalora]

Answer to Question 1

Answer: Most companies initially become global without making substantial investments in foreign countries by exporting, licensing, or franchising. Exporting entails selling abroad, either directly or indirectly, by retaining foreign agents and distributors. It is a way that many small businesses enter the global market. Licensing is an arrangement whereby an organization grants a foreign firm the right to use intellectual properties such as patents, copyrights, manufacturing processes, or trade names for a specific period of time. Licensing is usually limited to manufacturers. Franchising is an option whereby the parent company grants another firm the right to do business in a prescribed manner. The growth of franchising in the world is phenomenal. Franchisees must follow stricter operational guidelines than do licensees.

Answer to Question 2

Answer: TRUE

[melly21297]

Excellent

[marict]

TYSM