Final answer:
The statement is false; licensing offers less control than exporting as it involves granting rights to another party in exchange for royalty fees. Regulations and safety standards influence international market entry decisions, and governments sometimes impose higher standards on imports to protect national interests.
Step-by-step explanation:
The statement that licensing is an international entry mode that presents less risk to the company but offers more control than exporting is False. Licensing involves granting a foreign company the right to manufacture a company's product or to use its intellectual property in exchange for a royalty fee. This mode implies less investment and less risk compared to direct investment, but it also offers less control over the manufacturing process and market operations than owning a subsidiary, for example. Exporting, on the contrary, gives a company more control over its product since it still handles the production but does carry the risk associated with entering a new market directly. When assessing international entry modes, companies consider various factors such as regulations, licensing requirements, safety, and environmental standards. These can act as informal trade barriers and influence a company's decision to enter new markets. Governments may impose higher safety standards on imported goods to protect national interests and the safety of consumers; while this can be seen as legitimate, it is also a matter of international trade rules and negotiations.