Which of the Following Is a Disadvantage of Licensing

question 2

Multiple Choice

Which of the following is a disadvantage of licensing?

• A) It does not help firms that lack capital to develop operations overseas.
• B) It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies.
• C) It cannot be used when a firm possesses some intangible property that might have business applications.
• D) The firm has to bear the development costs and risks associated with opening a foreign market.

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Definitions:

Independent Self

A self that is relatively separate, internal and unique.

Social Relations

The interactions and connections between individuals in a society, including familial, work, and friendship networks.

Clear Boundaries

Distinct and explicit limits or guidelines that define acceptable behavior or differentiate entities.

Immigrant Group

A community of people who have moved from their country of origin to another country, forming a distinct group within the new society.