Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as

(a) Licensing

(b) Franchising

(c) Contract manufacturing

(d) Joint venture

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Solution

It is under contract manufacturing that a firm outsources the production of its goods and services to foreign firms and concentrates on marketing operations in international business. On the other hand, in the licensing and franchising models, a company grants intellectual property rights to a foreign firm, and in a joint venture, two or more firms pool their resources to launch a new business enterprise.

Hence, the correct answer is option (c).

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Similar questions

Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as:

Which one of the following modes of entry brings the firm closer to international markets?

(a) Licensing

(b) Franchising

(d) Joint venture

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents is known as

(a) Contract manufacturing

(b) Franchising

(d) Licensing

Which one of the following modes of entry permits greatest degree of control over overseas operations?

(a) Licensing/franchising

(b) Wholly owned subsidiary

(d) Joint venture

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