Which of the Following Is a Drawback of Licensing as a Mode

question 103

Multiple Choice

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

• A)The licensor has to bear all costs and risks associated with developing a foreign market.
• B)Licensing does not give a firm tight control over manufacturing,marketing,and strategy.
• C)Licensing does not benefit firms lacking the capital to expand operations overseas.
• D)Licensing deals fail when there are barriers to foreign investment in a particular country.
• E)A firm that enters into a licensing deal with a foreign country will have no long-term interest in that country.

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Definitions:

Yeast

A type of fungus used in baking and brewing due to its fermentation properties, also known to cause infections in humans.

Mold

A fungus that grows in the form of multicellular filaments called hyphae, commonly found in damp, warm conditions.

Healthy Immune Systems

Refers to immune systems that function effectively in protecting the body from diseases and infections.

Spreads Quickly

A characteristic of a condition or disease that can rapidly extend to more areas or individuals.