Which of the Following Is a Disadvantage Associated with Licensing

question 70

Multiple Choice

Which of the following is a disadvantage associated with licensing?

• A) The licensee pays lower wages and sells at lower prices.
• B) The licensor may create its own competition.
• C) The foreign government dislikes it because it does not increase local employment.
• D) This is the most expensive and risky method for global expansion.
• E) The firm's brand does not get international exposure.

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Definitions:

Empirical Evidence

Information acquired by observation or experimentation.

Predictability

The extent to which future events or behaviors can be forecasted based on current or past information.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Mental Processes

Internal, covert activities of the mind, such as thinking, feeling, and remembering.