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:

Gradual Emancipation

A process of abolishing slavery that occurs in stages over a period of time rather than immediately.

Manumission

The act of a slave owner freeing their slaves, a practice that occurred in the United States and elsewhere prior to the abolition of slavery.

Prominent Men

Individuals who stand out in society due to their achievements, influence, or contributions to various fields or social causes.

American Slaves

Individuals held in bondage and forced into labor without pay, primarily in the United States before the abolition of slavery with the Thirteenth Amendment in 1865.