Which of the Following Is an Advantage of International Licensing

question 62

Multiple Choice

Which of the following is an advantage of international licensing?

• A) It enables the company realize scale economies and location economies through manufacturing products in a centralized location.
• B) It allows the company  to collect profits from one licensee and use it to support others.
• C) It eliminates the risk of losing control over a technology that the company owns.
• D) It enables the company to coordinate its strategy efficiently to achieve competitive advantage.
• E) It takes away the pressure of development costs and risks associated with opening up a foreign market from the company.

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Definitions:

Sequential Games

Games or strategic situations where players make decisions one after another, with each player aware of the previous players' moves before making their own decisions.

First-mover Advantages

The competitive edge that a company gains by being the first to market with a new product or service.

Repeated Games

In game theory, repeated games are those where the same game (with the same payoffs to strategies) is played more than once, allowing for strategy development over time based on past outcomes.

Payoffs

The outcomes or returns from an action or investment, notably used in the context of game theory to represent the consequences faced by participants.