Major Drawbacks of Licensing Include

question 4

Multiple Choice

Major drawbacks of licensing include

• A)The risk of losing the capital investment.
• B)The risk of the local government changing international trade policies.
• C)The loss of control and the possibility of creating a new competitor.
• D)All of the above

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Definitions:

Global Economy

refers to the interconnected worldwide economic activities and exchanges that transcend national borders.

China's Foreign Direct Investment

Investments made by China in business interests in other countries, in the form of ownership of firms or establishment of manufacturing or service facilities.

Insourcing

The practice of performing tasks or services within an organization, using its own employees and resources instead of outsourcing.

Global Sourcing

The practice of sourcing goods and services from the global market, across geopolitical boundaries.