Business Studies

Compared to licensing, franchising is a more advantageous mode of entry because ____________.


ANSWER

all the above


SOLUTION
The advantages of Franchising are as follows:
  • It is considered a less expensive mode of entering into international business.
  • Since no or very little foreign investment is involved, franchiser is not a party to the losses, if any, that occur to foreign business.
  • Since the business in the foreign country is managed by the franchisee who is a local person, there are lower risks of business takeovers or government interventions
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