What Are the Risks Associated with Licensing as a Means

question 65

Multiple Choice

What are the risks associated with licensing as a means of entering overseas markets?

• A)Licensing limits a company's ability to coordinate strategic moves across countries.
• B)A company may lose control of its technology.
• C)A company may lose control over its manufacturing,marketing,and strategic functions.
• D)All of these choices.
• E)None of these choices.

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Definitions:

Creative Destruction

The hypothesis that the creation of new products and production methods destroys the market power of existing monopolies.

Brick And Mortar Stores

Physical retail outlets where customers can visit in person to purchase goods or services.

Profit Potential

The capacity for a business or investment to generate earnings greater than its costs.

New Technology

Innovative or improved tools, systems, or procedures that enhance efficiency, productivity, or quality in various fields.