46. Exporting is a low-cost way to reach global markets. 47. Foreign outsourcing can cut production costs to a fraction of the cost of domestic production. 48. Smaller firms are better able to increase global reach than larger businesses. 49. Smaller firms tend to begin with exporting and move along the spectrum as the business develops. 50. Foreign licensing is the most basic level of international market development. 51. Quality control over foreign outsourcing requires detailed specifications and is easily monitored by the contracting firm. 52. Exporting involves shipping goods abroad that have been produced domestically. 53. A key difference between franchising and licensing is that franchisees use the identity of the franchisor. 54. Foreign licensing involves a domestic firm granting an overseas business the rights to produce and market a product or use a trademark in a defined geographic area. 55. The licensee is the company granting the right to produce and market its product overseas. 56. The licensee is the company buying the right to produce or market a product abroad. 57. Foreign franchising is a specialized type of licensing. 58. A franchisor grants the rights for another firm to produce and market its products as long as the business agrees to specific operating requirements. 59. Foreign direct investment tends to be inexpensive, but it gives companies very little control of business operations in a foreign country. 60. Joint ventures tend to be most useful in countries that require local political and cultural knowledge in order to successfully do business. 61. Licensors run the risk that unethical licensees may become their competitors, using information that they gained from the licensing agreement. 62. Coca-Cola and Pepsi have licensees worldwide