Which of the Following Is NOT a Potential Disadvantage of Licensing

question 12

Multiple Choice

Which of the following is NOT a potential disadvantage of licensing relative to FDI?

• A) possible loss of opportunity to enter the licensee's market with FDI later
• B) risk that technology will be stolen
• C) high agency costs
• D) All of the above are potential disadvantages to licensing.

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Definitions:

European Countries

Nations located in the European continent, each with its sovereignty, culture, and economic policies.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the impact of the next dollar earned on their tax burden.

Proportional

Referring to a relationship where changes in one item directly mirror changes in another, often expressed as a constant ratio.

Tax System

The legal framework and mechanisms through which taxes are imposed on individuals, corporations, and transactions in a country, shaping the distribution of tax burdens.