Asked by Kotomi Yasumoto on Jul 08, 2024
Verified
In ___, the foreign firm buys the rights to use another's name and operating methods in its home country.
A) insourcing
B) franchising
C) global sourcing
D) exporting
E) offshoring
Franchising
The payment of a fee to a foreign business for rights to locally operate using its name, branding, and methods.
- Differentiate between assorted types of international trade activities, namely exporting, importing, licensing, franchising, and direct investments.
Verified Answer
AA
Alaina AlbaneseJul 13, 2024
Final Answer :
B
Explanation :
The practice described here is clearly franchising, where a foreign firm (the franchisee) buys the rights to use another's name and operating methods in its home country.
Learning Objectives
- Differentiate between assorted types of international trade activities, namely exporting, importing, licensing, franchising, and direct investments.