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Abbie Ramlochan
on Nov 22, 2024

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In the context of a company entering a foreign market, which of the following is a difference between licensing and wholly owned subsidiaries?

A) Licensing is an equity mode of entering a foreign market, whereas wholly owned subsidiaries refer to a nonequity mode of entering a foreign market.
B) Licensing possesses low risk, whereas wholly owned subsidiaries are subjected to high risk.
C) Licensing protects intellectual property, whereas wholly owned subsidiaries are prone to losing their intellectual property.
D) Licensing grants complete control of product and brand, whereas wholly owned subsidiaries have limited control of product and brand.

Licensing

The granting of a legal permission by one entity to another, allowing the latter to engage in an activity that is under the control or ownership of the former.

Wholly Owned Subsidiaries

Companies whose entire share capital is held by another company, typically referred to as the parent company.

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.

  • Pinpoint the determinants impacting a firm's choice of method for entering global markets.
  • Perceive the effect of different entry approaches on a corporation's governance of its operations and brand image.
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Monifa HaynesNov 23, 2024
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