Discuss about the Contractual Entry Mode in the foreign market.
Answer: Profitability analysis requires estimation of both international revenue and incremental costs. Licensing is used when exporting or equity investment cannot use. As a result, licensing is considered its marginal activities of manufacturers. This causal approach encourages 2 bad decisions; Under licensing—manufacturer ignores licensing when it is more profitable (should do). Over licensing—Manufacturers enter into […]
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