Which of the Following Is an Advantage of Licensing as a Mode

question 50

Multiple Choice

Which of the following is an advantage of licensing as a mode of entry into foreign markets?

• A) It helps a firm to realize substantial experience curve and location economies.
• B) It gives the firm tight control over manufacturing, marketing, and strategy.
• C) The licensor does not have to bear the development costs and risks associated with opening a foreign market.
• D) Firms can easily maintain control over how their technological know-how is used by a licensee.
• E) Licensing allows a foreign firm to use profits earned in one country to support competitive attacks in another.

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Definitions:

Affirmative Action

A policy or a set of measures aimed at increasing opportunities for historically underrepresented groups in areas such as education and employment.

Admissions Process

The procedure through which institutions, particularly educational, evaluate and decide on the acceptance of applicants based on certain criteria.

Audit Studies

Research methodology that uses matched pairs of individuals (such as in race or gender) to apply for real job opportunities or housing to investigate discrimination.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.