In comparison to licensing/franchising, FDI has the following advantages except ______.
A) FDI enables greater control over overseas operations.
B) FDI enables greater protection over key assets.
C) FDI facilitates the transfer of implicit knowledge.
D) FDI allows the utilization of location advantages.

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) indeed allows for greater control over operations, better protection of key assets, and facilitates the transfer of implicit knowledge. However, utilizing location advantages is not exclusive to FDI; licensing and franchising can also leverage location advantages by allowing companies to operate in foreign markets without the need for significant capital investment, which is a requirement in FDI.

In Comparison to Licensing/franchising, FDI Has the Following Advantages Except