According to the text, a disadvantage of licensing is that:
A) it prevents a firm from importing.
B) it is difficult to ensure quality control of the production process.
C) it prevents a firm from exporting.
D) none of the above

Question

Quizplus · Accepted Answer

Licensing involves giving permission to another company to use a company's intellectual property or technology. The downside is that the licensed product may not be produced to the same quality standards as the original product. This can damage the reputation of the licensor and can make it difficult to maintain consistent quality control of the production process. The other options presented are not disadvantages of licensing.

According to the Text, a Disadvantage of Licensing Is That