Which of the following is NOT normally seen as a major risk associated with licensing as a means of entering foreign markets?
A) Licences operate for a limited time period.
B) Licensing can lead to "cloning a competitor" whereby the licensee takes the learning and know- how and uses it to enter new markets.
C) Licencees may not fully develop the product's full potential.
D) Licences may produce sub- standard products.
E) All of the above are risks associated with licensing.

Question

Quizplus · Accepted Answer

Licensing agreements typically involve strict quality control measures to ensure that the licensee produces products to the standard set by the licensor. Therefore, producing sub-standard products is not a major risk associated with licensing. However, choices A, B, and C are commonly cited as risks of licensing.

Which of the Following Is NOT Normally Seen as a Major