The Advantages of Using a Licensing Strategy to Participate in Foreign

question 107

Multiple Choice

The advantages of using a licensing strategy to participate in foreign markets include

• A)being especially well-suited to achieve scale economies.
• B)being able to charge lower prices than rivals.
• C)being able to achieve first-mover advantages quickly and easily.
• D)being able to leverage the company's technical know-how, appealing brand, or patents without committing their resources or capabilities to foreign markets.
• E)being able to achieve higher product quality and better product performance than with an export strategy.

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Definitions:

Financial Comparisons

The action of evaluating and contrasting financial metrics, statuses, or situations between two or more entities or over time.

Close Friendships

Deep, significant personal relationships characterized by mutual affection, support, and a strong emotional bond.

Reciprocity

Mutual exchange of privileges, benefits, or actions between parties, where each party provides something of value to the other.

Sexual Attraction

The feeling of finding someone sexually appealing and wanting to engage in sexual activities with them.