Which of the Following Is the Primary Disadvantage of Licensing

question 67

Multiple Choice

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

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

---

Definitions:

Organizational Development

A planned effort to increase an organization's effectiveness and health through interventions in its processes, operations, and culture.

Team Building

The process of creating and encouraging a group of employees to work together toward achieving group goals and increased productivity.

Sensitivity Training

A form of training designed to help individuals understand and improve their interpersonal relationships through the development of empathy and awareness of others' feelings.

Role Playing

A teaching or therapeutic technique where individuals act out roles to improve skills, enhance empathy, or solve problems.