Which of the following is an advantage of international licensing?
A) It enables the company 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 it 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 up a foreign market from the company.

Question

Which of the following is an advantage of international licensing?
A) It enables the company 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 it 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 up a foreign market from the company.

Quizplus · Accepted Answer

International licensing allows a company to enter a foreign market without facing high costs and risks associated with setting up a new venture, thus taking away the pressure of development costs and risks.

Which of the Following Is an Advantage of International Licensing