Which of the Following Is the Primary Disadvantage of Licensing

question 34

Multiple Choice

Which of the following is the primary disadvantage of licensing as a foreign market entry strategy?

• A) A firm in effect "teaches" a foreign company how to produce its proprietary products.
• B) High transportation costs
• C) It is usually a one-time activity.
• D) A firm loses partial control of its business operations.
• E) Quality control

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Definitions:

Future Opportunities

Prospects or possibilities that may arise in the future, offering potential for growth or advancement.

Long Term

Relating to or happening over a long period of time, often extending beyond a year.

Apologizing

Apologizing involves expressing regret or remorse for an action or statement that has caused harm or offense to another person, often with the intent to reconcile.

Business Messages

Communication conveyed through various formats, such as emails, letters, reports, or memos, intended for business purposes.