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In international business, what entry strategy grants a foreign firm the right to use intellectual property, patents, or trademarks for a fee or royalty?

ALicensing
BDirect Investment
CFranchising
DContract Manufacturing

Explanation

* Licensing gives a foreign licensee rights to use proprietary processes, patents, or trademarks in exchange for royalties.
* It provides a low-risk entry mode into foreign markets without heavy capital investment.
* Disadvantages include loss of operational control and risk of creating a future competitor.

Exam Relevance
  • Topic: Global Marketing
  • Subtopic: International Entry Strategies
Submitted by: mcqstutor Team More Marketing MCQs →

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