Major drawbacks of licensing include
A)The risk of losing the capital investment.
B)The risk of the local government changing international trade policies.
C)The loss of control and the possibility of creating a new competitor.
D)All of the above

Question

Quizplus · Accepted Answer

Licensing can lead to a loss of control over how the product is marketed and sold, and there's a risk that the licensee could become a competitor in the future. A) and B) are not directly related to licensing but to foreign direct investments and political risks respectively.

Major Drawbacks of Licensing Include