Which of the Following Is the Primary Disadvantage of Franchising

question 44

Multiple Choice

Which of the following is the primary disadvantage of franchising as a foreign market entry strategy?

• A) It is usually a one-time activity.
• B) quality control
• C) A firm loses partial control of its business finances.
• D) high transportation costs
• E) The costs of setting up and maintaining a manufacturing facility and permanent presence in a foreign country can be high.

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Definitions:

Contract Manufacturers

Companies that produce goods under contract for other companies, under the branding of the latter, often as a cost-saving measure.

Mass Customization

Mass customization is a strategy that combines the efficiency of mass production with the flexibility of individual customization, allowing for personalized products at scale.

Work-study Grant

A form of financial aid awarded to students based on need, allowing them to work part-time jobs while attending school to help fund their education.

Health Fees

Charges or costs associated with medical services, treatments, or health-related activities.