Which of the Following Best Compares Licensing and Exporting as Tools

question 68

Multiple Choice

Which of the following best compares licensing and exporting as tools for entering foreign markets?

• A) Licensing and exporting are both low-risk methods, but licensing is not as simple as exporting.
• B) Licensing is riskier and more complicated than exporting.
• C) Exporting is much riskier and more complicated than licensing.
• D) Licensing and exporting are both low-risk, but exporting is more complicated.
• E) Licensing and exporting are both complicated and expensive methods.

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Definitions:

Total Variable Cost

Charges that fluctuate in direct relation to the volume of production or output.

Merchandising Company

A Merchandising Company is a business that purchases finished products and sells them at a profit, without altering the products themselves.

Cost Structure

The composition of a company’s costs, including fixed and variable costs, which impacts its profitability and pricing strategy.

Variable

A variable is an element, feature, or factor that is liable to vary or change; in business, it often refers to costs that fluctuate with the level of production or sales.