The Advantages of Using a Franchising Strategy to Pursue Opportunities

question 49

Multiple Choice

The advantages of using a franchising strategy to pursue opportunities in foreign markets include

• A)having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support and monitor franchisees.
• B)being particularly well-suited to the global expansion efforts of companies with multidomestic strategies.
• C)allowing a company to achieve scale economies.
• D)being well suited to companies who employ cross-border transfer strategies.
• E)being well suited to the global expansion efforts of manufacturers.

---

Definitions:

Theory

A general principle or set of principles proposed to explain how a number of separate facts are related.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more contradictory beliefs, values, or ideas simultaneously.

Inconsistencies

Occurrences of being in conflict or not being consistent in thoughts, behaviors, or actions.

Attitudes

Mental inclinations demonstrated through assessing a specific entity with a certain level of preference or aversion.