Licensing has an advantage over exporting because the company enters the market with a known product, leases manufacturing space, hires foreign labour and, for a limited time, manufactures a product that has a high probability of success.

Question

Quizplus · Accepted Answer

Licensing involves granting permission to a foreign company to produce and sell a product, not directly entering the market or managing production and labor.

Licensing Has an Advantage Over Exporting Because the Company Enters