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.

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Definitions:

Organic Vanilla

Refers to vanilla products that are produced following organic farming practices without the use of synthetic pesticides, artificial fertilizers, or genetically modified organisms (GMOs).

Pints

A unit of volume used primarily in the United States and the British imperial system, equal to 16 fluid ounces or approximately 473 milliliters.

Cent

a unit of currency that represents 1/100th of the basic unit of currency in many countries, including the United States and the Eurozone.

Chocolate Syrup

A sweet, chocolate-flavored liquid or sauce often used as a topping for desserts and in beverages.