Which entry strategy is associated with fast entry with very low capital investment?

Which entry strategy is associated with fast entry with very low capital investment?

• A. Exporting
• B. Licensing
• C. Franchising
• D. Strategic alliance

Answer: (B)

Licensing is the approach that delivers fast market presence with minimal capital outlay. By granting a local firm the rights to use your technology, brand, or product in exchange for royalties, you avoid building facilities, hiring local staff, or establishing distribution networks. The licensee handles production, marketing, and local compliance, so you gain access to the market quickly while keeping cash investments very low. This setup lets you scale into multiple markets through partners without taking on the financial risk of each country. Other options typically require more capital, more infrastructure, or longer negotiations and alignments, which can slow entry or increase upfront costs.

Licensing is the approach that delivers fast market presence with minimal capital outlay. By granting a local firm the rights to use your technology, brand, or product in exchange for royalties, you avoid building facilities, hiring local staff, or establishing distribution networks. The licensee handles production, marketing, and local compliance, so you gain access to the market quickly while keeping cash investments very low. This setup lets you scale into multiple markets through partners without taking on the financial risk of each country. Other options typically require more capital, more infrastructure, or longer negotiations and alignments, which can slow entry or increase upfront costs.