Which of the Following Is the Primary Disadvantage of Licensing

question 34

Multiple Choice

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

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

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Definitions:

Spiritual

Relating to or affecting the human spirit or soul as opposed to material or physical things.

Wholesale Salesperson

A person who sells products to parties for resale, use in producing other goods or services, or operating an organization.

Designer Clothing

Designer clothing refers to high-end garments that have been created by a well-known fashion designer or fashion house, known for their quality, style, and exclusivity.

Core Principles

Fundamental beliefs or values that form the foundation for a system, organization, or individual's actions.