Which of the Following Is NOT a Typical Disadvantage of Licensing

question 9

Multiple Choice

Which of the following is NOT a typical disadvantage of licensing?

• A)little control over the marketing of the products
• B)licensees may develop a competitive product after the license expires
• C)lower potential returns than the use of exporting or strategic alliances
• D)incompatibility of the licensing partners

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Definitions:

Incentive

A thing that motivates or encourages someone to do something, particularly in economic contexts to influence behaviors.

Dominant Strategy

A strategy in game theory that is best for a player regardless of the strategies chosen by the other players.

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Repeated Games

A situation in strategic interactions where players engage in the same game multiple times, allowing for strategy adjustments based on previous outcomes.