The advantages of ________ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse.

Question

Quizplus · Accepted Answer

Licensing is advantageous in situations where capital is scarce, import restrictions are in place, there is sensitivity to foreign ownership, or there is a need to protect patents and trademarks against cancellation for nonuse. Licensing allows a company to grant its technology, trademarks, or patents to a foreign company in exchange for a fee or royalty, which can circumvent these issues without requiring significant capital investment or full foreign ownership.

The Advantages of ________ Are Most Apparent When Capital Is