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

Question

Quizplus · Accepted Answer

Licensing can create a competitor because the licensee gains access to the licensor's technology and expertise, which they can use to compete against the licensor in the future.

Which of the Following Is a Disadvantage of Licensing