Which of the following statements is true about licensing?
A) It is one of the most complex ways to engage in international marketing.
B) The licensor gains entry into the new market at low risk.
C) The licensee has no access to proprietary information.
D) The licensee receives a fee or royalty.
E) The only benefit for a licensee is the production expertise it gains.

Question

Quizplus · Accepted Answer

Licensing allows the licensor to enter new markets at a lower risk because it does not require the investment in manufacturing facilities or the establishment of sales operations in the foreign market. The licensee manufactures and markets the product, which reduces the risk for the licensor.

Which of the Following Statements Is True About Licensing