What Is a Drawback of Licensing as a Mode of Entry

question 91

Multiple Choice

What is a drawback of licensing as a mode of entry into foreign markets?

• A) The licensor has to bear all costs and risks associated with developing a foreign market.
• B) Licensing does not give a firm tight control over manufacturing, marketing, and strategy.
• C) Licensing does not benefit firms lacking the capital to expand operations overseas.
• D) Licensing deals fail when there are barriers to foreign investment in a particular country.
• E) A firm that enters into a licensing deal with a foreign country will have no long-term interest in that country.

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Definitions:

Crisis Communications

Crisis Communications involves strategies and efforts to communicate effectively with stakeholders during a crisis situation to manage and mitigate potential negative impacts.

Crisis Impact Stage

The phase during a crisis when the effects are felt most acutely, demanding immediate response and management to mitigate impact.

Affected

Being influenced or touched by an external factor, often used to describe the impact of an event or condition on individuals or communities.

Mortification

A public relations strategy involving an apology or showing contrition by an organization after making a mistake or facing a scandal.