alleryStart learning →What is franchising described as?
AA form of licensing that has grown rapidly in recent years
BA form of exporting used only by very large corporations
CA form of joint venture in which each side holds half
DA form of direct investment in overseas manufacturing
Answer & Solution
Correct answer: A. A form of licensing that has grown rapidly in recent years
1. Franchising is described as a form of licensing.
2. It has grown rapidly in recent years.
3. Many franchisors operate thousands of outlets in foreign countries.
4. More than half of the international franchises are for fast-food restaurants and business services.
5. Because it is a licence, it does not require the franchisor to own overseas assets.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.6 Participating in the Global Marketplace_
Keep practising Competing in the Global Marketplace
Browse all Competing in the Global Marketplace questions for BBA International Business, or explore more International Business topics.
Related questions
How many Sustainable Development Goals did the United Nations member nations adopt in 2015What defines a multinational corporation?How is Gross National Income defined?What is infrastructure?Why does business slow down in Muslim countries during Ramadan?What is nationalism?What is countertrade?What is direct foreign investment?