Question

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

a. True
b. False

Answer 1

Answer: False

Step-by-step explanation:

Licensing involves a company giving another company in another country/market permission to produce its products or use its likeness. The company that gets the license will then pay the parent company specified amounts for being able to do so.

This method of international business is cheap as the company licensing will see its brand spread to other countries without actually having to worry about set-up costs in the other country which can be very high. It is therefore one of the easiest methods of expanding to international markets there is.