Which of the following is a disadvantage of licensing?
A) The licensing company gains entry into a foreign market at a high risk.
B) It takes a lot of time for the licensee to gain production expertise and name.
C) Licensing is a complex way for a manufacturer to enter international marketing.
D) The licensor potentially creates a competitor in the form of the licensee.
E) The licensee is restricted from gaining knowledge about the licensor's intellectual property.

Question

Quizplus · Accepted Answer

By licensing technology, a company gives away knowledge of its intellectual property to another company, thus there is a possibility of a licensee becoming a competitor in a similar market.

Which of the Following Is a Disadvantage of Licensing