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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