Question

Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern, and where the firms' valuable asset is their brand name?

Answer 1

Answer: LICENSING

Explanation: Licensing is a business arrangement process whereby an organization or business entity with already existing product and good market prospect allows another company in another country or society to produce it's Products, in return the company licensed to produce the product will pay certain percentage of the Revenue from the sale of the product to the business or organization that issued the License. In this case the company will not face the risk of losing control over the management skills or technological know-how.