The biggest disadvantage associated with licensing is that the licensor gives up control over the quality of the good or service sold by the foreign licensee.

Question

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When a company decides to license its brand or technology to a foreign partner, the licensor gives up some level of control over how the licensed product or service is produced, marketed, and distributed. The foreign licensee has the freedom to operate their business in the way they see fit, which can result in differences in quality, pricing, and other factors that may negatively impact the brand's reputation.

The Biggest Disadvantage Associated with Licensing Is That the Licensor