According to internalization theory, one drawback of licensing is that it might result in a firm giving away technological know-how to a competitor.

Name: According to internalization theory, one drawback of licensing is that it might result in a firm giving away technological know-how to a competitor.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

Internalization theory suggests that licensing can lead to the dissemination of proprietary technology to competitors, as the licensee may use the knowledge to compete against the licensor.

According to Internalization Theory, One Drawback of Licensing Is That