Final answer:
The agreements that enable McDonald's to be operated globally under a consistent brand and business model represent franchising.The correct option is A.
Step-by-step explanation:
The agreements that allow global McDonald's outlets to use McDonald's trademarked name and menu items represent the form of market entry known as franchising. Franchising is a business strategy where a company, the franchisor, allows another party, the franchisee, to use its brand, trademark, and business model. In return, the franchisee pays a franchise fee and ongoing royalty fees to the franchisor. This system has been instrumental in McDonald's global expansion, allowing it to operate in many countries around the world.
McDonald's has effectively used this strategy not only for economic growth but also as a vehicle for globalization and cultural diffusion. The McDonaldization of society refers to the widespread adoption of the fast-food business model in various social institutions, impacting global commerce and culture. Though some seek to balance standardization with individualization, through what is known as 'de-McDonaldization', the franchise model remains a prominent example of American corporate influence abroad.
Notably, franchising differs from other forms of market entry like licensing, joint ventures, and direct investment in its structure and function. Licensing involves permission to use a trademark or technology, while a joint venture is a cooperative enterprise between two or more business entities, and direct investment involves a company owning and controlling facilities in another country. Franchising offers a blend of semi-independent business ownership under a larger corporate umbrella.