Which of the following is an advantage of international licensing?
A) It enables the company to realize scale economies and location economies through manufacturing products in a centralized location.
B) It allows the company to collect profits from one licensee and use them to support others.
C) It eliminates the risk of losing control over a technology that the company owns.
D) It enables the company to coordinate its strategy efficiently to achieve competitive advantage.
E) It takes away the pressure of development costs and risks associated with opening a foreign market from the company.

Question

Quizplus · Accepted Answer

International licensing allows a company to enter a foreign market without incurring the significant development costs and risks associated with opening a foreign market. The licensee takes on the risks and development costs, while the licensor receives a royalty payment in exchange for the right to use its intellectual property.

Which of the Following Is an Advantage of International Licensing