Licensing as a Market Entry Mode Has Several Disadvantages and Opportunity

question 49

Multiple Choice

Licensing as a market entry mode has several disadvantages and opportunity costs,which do not include:

• A)limited market control.
• B)agreement may have short life.
• C)leveraging and exploiting by licensee.
• D)similar product or technology development by licensee.
• E)adaptations by licensee to fit local tastes.

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Definitions:

Structured

Organized in a coherent and systematic manner, often referring to financial products, settlements, or organizational planning.

Time-Consuming

Requiring a great deal of time to complete, often more than what is considered reasonable or necessary.

Negotiation/Mediation

A process where disputing parties come together to discuss their differences with the aim of reaching an agreement, with mediation involving a neutral third party to assist.

ADR

Alternative Dispute Resolution, a range of processes used to resolve conflicts outside of traditional court proceedings.