In the Context of a Company Entering a Foreign Market

question 23

Multiple Choice

In the context of a company entering a foreign market, which of the following is a difference between licensing and wholly owned subsidiaries?

• A) Licensing is an equity mode of entering a foreign market, whereas wholly owned subsidiaries refer to a nonequity mode of entering a foreign market.
• B) Licensing possesses low risk, whereas wholly owned subsidiaries are subjected to high risk.
• C) Licensing protects intellectual property, whereas wholly owned subsidiaries are prone to losing their intellectual property.
• D) Licensing grants complete control of product and brand, whereas wholly owned subsidiaries have limited control of product and brand.

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Definitions:

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