A Company That Enters a Foreign Market by Entering into a Licensing

question 55

Multiple Choice

A company that enters a foreign market by entering into a licensing agreement with a local company

• A) will realize location economies.
• B) must engage in global strategic coordination.
• C) will realize experience curve effects.
• D) risks losing control over its technology to the venture partner.
• E) must engage in global strategic coordination and will realize experience curve effects.

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Definitions:

Hypothesized Value

A specific value proposed as existing or being true within the context of a statistical hypothesis test.

Null Hypothesis

A default statement that indicates no effect, difference, or relationship between two or more variables in an experiment.

Alternative Hypothesis

The hypothesis that is tested against the null hypothesis, usually representing the notion of a difference or effect.

Type I Error

Erroneously dismissing a true null hypothesis, often called a "false positive."