Question

McDonald's has sold individual owners the rights to use its trademark and business system. Furthermore, McDonalds's has used this approach to open restaurants in more than 100 foreign countries. This is an example of ________.

Answer 1

McDonald's franchise model, allowing for standardized business practices globally, symbolizes globalization and the McDonaldization of society, demonstrating America's soft power.

Step-by-step explanation:

McDonald's has sold individual owners the rights to use its trademark and business system and has used this approach to open restaurants in more than 100 foreign countries. This is an example of a franchise. A franchise is a business model where a company (the franchisor) allows an individual (the franchisee) to use its trademark, distribute its products or services, and access its established business system in exchange for a franchise fee and ongoing royalties. This franchising strategy has enabled McDonald's to become ubiquitous around the world, illustrating the phenomenon of globalization.

Through franchising, McDonald's has been able to standardize its offerings across the globe, an effect often referred to as the McDonaldization of Society. While this business strategy has led to a proliferation of McDonald's restaurants worldwide, it has also led to reduced product variety in the food industry and a widespread perception of brand uniformity.

In the context of the student's question, McDonald's establishing franchises in over 100 foreign countries is an example of the reach of America's soft power and the impact of American culture and business practices internationally.