Refer to the Passage Below to Answer the Following Questions

question 33

Multiple Choice

Refer to the passage below to answer the following questions.
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered just whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Though seeing first-hand the benefits Wellman found with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, the Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be using which market entry strategy?

• A) exporting
• B) franchising
• C) licensing
• D) contract manufacturing
• E) joint ownership

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Definitions:

Psychosurgery

Brain surgery for mental disorders.

Severe Disorder

Refers to a mental or physical health condition that significantly impacts an individual's ability to function in daily life.

High Risk

Situations, activities, or conditions that have a significant chance of leading to a negative or undesirable outcome.

Suicide

The act of voluntarily ending one's own life.