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Why Do Licensing Agreements Impose Restrictions on the Licensee? How

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Essay

Why do licensing agreements impose restrictions on the licensee? How does licensing enable a firm to opt for a steady stream of royalties rather than risk losing the dominant position of its technology?


Definitions:

Imports

Products or services imported from foreign countries for the purpose of selling.

Trade Deficit

A situation where a country's imports exceed its exports, indicating that it is buying more goods and services from abroad than it is selling.

Exports

Goods or services sold by a country to buyers in other countries, contributing to the exporting country's gross domestic product.

Imports

Items or services transferred into a country from a foreign location to be sold.

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