General Studies · International Business
A multinational corporation decides to enter a foreign market by entering into a contractual agreement with a local firm, allowing the local firm to produce and sell its products using its brand name, technology, and operational guidelines. The multinational firm does not make any equity investment in the host country. Which mode of entry is being adopted?
- 1Foreign Direct Investment
- 2Licensing✓
- 3Joint Venture
- 4Wholly Owned Subsidiary
Correct answer
Licensing
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