Which of the Following Is an Advantage of International Licensing

question 66

Multiple Choice

Which of the following is an advantage of international licensing?

• A) It enables the company to realize scale economies and location economies through manufacturing products in a centralized location.
• B) It allows the company to collect profits from one licensee and use them to support others.
• C) It eliminates the risk of losing control over a technology that the company owns.
• D) It enables the company to coordinate its strategy efficiently to achieve competitive advantage.
• E) It takes away the pressure of development costs and risks associated with opening a foreign market from the company.

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Definitions:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services while minimizing waste and inefficiencies.

Fundamental Questions

Basic economic questions that include what to produce, how to produce, and for whom to produce, reflecting scarcity and resource allocation.

Market Economy

An economic system in which supply and demand determine the production and allocation of resources through decentralized decision-making.