Question

It is anticipated that emerging-market multinationals will play a greater role in international business during this century. What mode of international business operations do you think they would choose? Why?

Answer 1

Answer:

I think they will choose licensing

Explanation

As the trend moves toward multinational businesses, more companies will put expansion to another country as their main priorities to expand their profit.

Licensing provides the opportunity for people on another country to use their brand in their home country, and in return they have to pay a certain amount of money to the licensee along with its percentage of income.

This means that Licensing will provide the company with:

- A fixed , guaranteed income

- Ability to spread their brand recognition to another country

- Less risk compared to actually have to open new branch on another country by their own.