[amp_mcq option1=”Both statements are true” option2=”Both statements are false” option3=”Statement I is true, but Statement II is false” option4=”Statement I is not true, but Statement II is true” correct=”option1″]<\/p>\n
The correct answer is: Statement I is true, but Statement II is false.<\/strong><\/p>\n Statement I is true because licensing mode is a relatively low-risk and low-cost entry mode for companies with low cash reserves. By licensing their technology or trademarks to a foreign company, they can generate revenue without having to make a large initial investment.<\/p>\n Statement II is false because cash-rich firms may prefer other entry modes, such as wholly owned subsidiaries, which give them more control over their operations in foreign markets.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”Both statements are true” option2=”Both statements are false” option3=”Statement I is true, but Statement II is false” option4=”Statement I is not true, but Statement II is true” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[702],"tags":[],"class_list":["post-33893","post","type-post","status-publish","format-standard","hentry","category-business-environment-and-international-business","no-featured-image-padding"],"yoast_head":"\n\n