Licensing is one of the ways of entering of foreign market without ______.

Question

KollegeApply · Accepted Answer

Licensing is one of the ways of entering of foreign market without capital requirement. Explanation: Licensing is a method of accessing overseas markets in which a corporation (licensor) offers a foreign company (licensee) permission to manufacture and sell its products or use its intellectual property in exchange for royalty fees. • It does not require a big capital investment because the licensee handles the production and marketing costs. • It also does not require establishing a completely owned subsidiary or creating strategic alliances, making it a low-cost and low-risk way of global expansion.

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