When the licensor fully investigates market opportunities and the abilities of its licensees, licensing has a relatively low financial risk.

Question

Quizplus · Accepted Answer

Licensing involves lower financial risk because the licensor typically requires less investment in foreign markets, relying instead on the licensee to manufacture, market, and distribute the products, while the licensor benefits from royalties and expanded market presence without the high costs associated with establishing and operating a foreign subsidiary.

When the Licensor Fully Investigates Market Opportunities and the Abilities