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Licensing offers the lowest level of control for the domestic corporation because the licensee is typically an independent entity that is not under the direct control of the licensor.
Licensing as an Entry Strategy into International Operations
- The form of entry strategy into international operations that offers the lowest level of control for the domestic corporation would be: Licensing.
The licensor may have some influence over the licensee's operations, but this influence is typically limited to matters such as quality control and adherence to the terms of the license agreement.
The main advantage of licensing as an entry strategy is that it requires relatively little investment on the part of the licensor. The licensor typically only needs to provide the licensee with the necessary technology or know-how, and does not need to establish a new physical presence in the foreign market. This can be a significant advantage for companies that are seeking to enter foreign markets quickly and with limited resources.
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