Licensing Has an Advantage Over Exporting Because the Company Enters

question 217

True/False

Licensing has an advantage over exporting because the company enters the market with a known product, leases manufacturing space, hires foreign labour and, for a limited time, manufactures a product that has a high probability of success.

---

Definitions:

Semiannually

A term describing an action or event that occurs twice a year.

Semiannual Coupon

A bond or fixed-income security payment made to its holder twice a year as interest for the investment.

Coupon Rate

The interest rate stated on a bond or other fixed-income security that the issuer promises to pay the holder until maturity.

Formulation

The process of creating a strategy, plan, or method for dealing with a specific issue or for achieving a specified goal.