Which of the Following Is a Disadvantage Associated with Licensing

question 70

Multiple Choice

Which of the following is a disadvantage associated with licensing?

• A) The licensee pays lower wages and sells at lower prices.
• B) The licensor may create its own competition.
• C) The foreign government dislikes it because it does not increase local employment.
• D) This is the most expensive and risky method for global expansion.
• E) The firm's brand does not get international exposure.

---

Definitions:

Dialectical Structure

A method of argument or exposition that systematically weighs contrasting facts or ideas with a view to the resolution of their real or apparent contradictions.

Message Topic

The main subject or idea conveyed in a communication.

Research and Development

A business or government activity that involves the study and creation of new products, services, or processes.

Main Idea

The central or most important concept, point, or message that an author wants to convey in a text.