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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Definitions:

Retrovirus

A type of virus that uses RNA as its genetic material and reversely transcribes its RNA into DNA for integration into the host's genome.

Photoautotrophs

Entities that perform photosynthesis, creating nourishment from carbon dioxide and water by harnessing the energy from sunlight.

Chemoautotrophs

Organisms that obtain their energy through the oxidation of inorganic molecules, rather than from sunlight.

Photoheterotrophs

Organisms that obtain energy from light but require organic carbon sources for growth and development, unlike plants which can fix carbon dioxide.