According to the Text, a Disadvantage of Licensing Is That

question 34

Multiple Choice

According to the text, a disadvantage of licensing is that:

• A) it prevents a firm from importing.
• B) it is difficult for the firm providing the technology to ensure quality control in the foreign production process.
• C) it prevents a firm from exporting.
• D) none of the above

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Definitions:

Economic Conduct

Behaviors and practices of businesses and consumers that are influenced by economic variables such as prices, income, and market trends.

Strategic Global Partnerships

Collaborations between companies across different countries aimed at leveraging resources, knowledge, and markets to achieve mutual business goals.

North American Free Trade Agreement

A trilateral trade bloc agreement between Canada, Mexico, and the United States to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.