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

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