Compare and Contrast Licensing and Franchising as Foreign Market Entry

question 73

Essay

Compare and contrast licensing and franchising as foreign market entry strategies. Why is franchising a more comprehensive strategy?

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Definitions:

Inelastic Supply

A situation where the quantity supplied of a good does not significantly change in response to changes in its price.

Labor Resources

Human workforce available for the production of goods and services.

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.

Skilled Labor

Workers who possess specialized skills, training, and education that are required to perform complex tasks.