The Advantages of Using a Licensing Strategy to Participate in Foreign

question 10

Multiple Choice

The advantages of using a licensing strategy to participate in foreign markets include

• A)being especially well suited to the use of cross-market subsidization.
• B)being able to charge lower prices than rivals.
• C)enabling a company to achieve competitive advantage quickly and easily.
• D)being able to leverage the company's technical know-how or patents without committing significant additional resources to markets that are unfamiliar,politically volatile,economically uncertain,or otherwise risky.
• E)being able to achieve higher product quality and better product performance than with an export strategy.

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Definitions:

External Locus of Control

A psychological concept describing individuals who believe that their successes or failures result from external factors and forces beyond their personal control.

Perceived Benefits Analysis

The evaluation of the advantages or improvements that individuals or organizations anticipate or experience from a product, service, or action.

Social Risk

The fears that consumers suffer when they worry others might not regard their purchases positively.

Performance Risk

Involves the perceived danger inherent in a poorly performing product or service.