Difference between licensing and wholly owned subsidiaries

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Question: In the context of a company entering a foreign market, identify a difference between licensing and wholly owned subsidiaries. Question 20 options: Licensing is an equity mode of entering a foreign market, whereas wholly owned subsidiaries refer to a nonequity mode of entering a foreign market. Licensing possesses high risk, whereas wholly owned subsidiaries are subjected to low risk. Licensing protects intellectual property, whereas wholly owned subsidiaries are prone to losing their intellectual property. Licensing creates distance from customers, whereas wholly owned subsidiaries provide direct exposure to local customers.

Reference no: EM133616890

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