A Company That Enters a Foreign Market by Entering into a Licensing

question 28

Multiple Choice

A company that enters a foreign market by entering into a licensing agreement with a local company

• A) can realize location economies.
• B) can engage in global strategic coordination.
• C) can realize experience-curve effects.
• D) risks losing control over its technology to the venture partner.
• E) can engage in global strategic coordination and realize experience-curve effects.

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Definitions:

Forecasting Human Resources

involves predicting an organization's future workforce needs to ensure it has the right number of employees with the necessary skills.

Organizational Objectives

The goals or targets that a company aims to achieve, which guide its operational and strategic activities.

Business Cycles

Business cycles refer to the fluctuations in economic activity that an economy experiences over a period, characterized by expansion and contraction phases.

Labour Mobility

The extent to which workers can move easily between jobs, locations, or industries, influenced by factors such as regulations and qualifications.