According to Internalization Theory

question 103

Multiple Choice

According to internalization theory:

• A)licensing gives a firm the tight control over manufacturing, marketing, and strategy in a foreign country that may be required to maximize its profitability.
• B)licensing may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
• C)licensing has no major drawbacks as a strategy for exploiting foreign market opportunities.
• D)a problem with licensing arises when the firm's competitive advantage is based much on its products rather than on the management, marketing, and manufacturing capabilities that produce those products.
• E)licensing is more profitable than FDI.

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