Which of the Following Is NOT a Potential Disadvantage of Licensing

question 52

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:

Bloom's Taxonomy

A hierarchical classification of educational objectives and learning outcomes, ranging from simple knowledge to complex evaluation and creation skills.

Synthesize

Synthesize involves combining various elements or concepts into a coherent whole, especially in the context of creating a new understanding or interpretation from different sources of information.

Bloom's Evaluate

Refers to the evaluation level in Bloom's taxonomy, requiring judgment based on criteria and standards through checking and critiquing.

Distributed Practice

A learning technique where practice is broken up into a number of short sessions over a longer period.