Which of the Following Is NOT a Potential Disadvantage of Licensing

question 19

Multiple Choice

Which of the following is NOT a potential disadvantage of licensing relative to FDI?

• A)Possible loss of quality control.
• B)Establishment of a potential competitor in third-country markets.
• C)Possible improvement of the technology by the local licensee, which then enters the original firm's home market.
• D)All of the above are potential disadvantages to licensing.

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Extraction Cost

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