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:

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, comprising wavelengths from approximately 380 to 740 nanometers.

Primary Colours

Fundamental colors (usually red, green, and blue for light; cyan, magenta, and yellow for pigments) that can be combined to create a full spectrum of colors.

Trichromatic Process

A theory of color vision that proposes three types of color receptors in the eye, each sensitive to red, green, or blue.

Opponent Process

A theory suggesting that emotions are regulated by mechanisms that operate in opposition to each other.