One of the advantages of licensing is that the profits generated from such agreements are typically higher than for FDI.

Question

Quizplus · Accepted Answer

This statement is actually false. Foreign Direct Investment (FDI) typically results in higher profits than licensing agreements because the investing company has more control over the operations and can receive a larger share of the profits. Licensing agreements usually involve sharing profits with the licensed company, resulting in a smaller profit margin for the licensee.

One of the Advantages of Licensing Is That the Profits