Why Should a High-Tech Firm Avoid Selecting Licensing as a Mode

question 86

Multiple Choice

Why should a high-tech firm avoid selecting licensing as a mode of entry?

• A) threat of creating efficient partners
• B) risk of losing control over technology
• C) fear of rapid imitation of core technology
• D) lack of a transitory technological advantage
• E) inability to deter development costs

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Definitions:

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside the expertise of the main business.

Vertical Integration

describes a strategy where a company expands its operations into different stages of production within its industry, often to control the supply chain or reduce dependency on suppliers.

E-Procurement

The electronic procurement process that utilizes online systems and technology to streamline purchasing, reduce costs, and enhance vendor management.

Vendor Selection

The process of evaluating and choosing suppliers based on criteria such as price, quality, reliability, and service.