Licensing Has an Advantage Over Exporting Because the Company Enters

question 217

True/False

Licensing has an advantage over exporting because the company enters the market with a known product, leases manufacturing space, hires foreign labour and, for a limited time, manufactures a product that has a high probability of success.

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Definitions:

Pairs Of Skis

Two skiing boards used for the sport of skiing, sold or used together as a set.

Goodyear

A multinational company known for its tire and rubber products.

Inventory

The complete inventory of products and materials in possession of a business, intended either for production or for selling.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting year; stands for Last-In, First-Out.