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Licensing Is a Popular Mode of Entry into Foreign Markets

Question 59

Multiple Choice

Licensing is a popular mode of entry into foreign markets for all of the following reasons except it:


A) Involves very little out of pocket costs.
B) Allows the firm to take advantage of locational advantages.
C) Offers weak protection of intellectual property
D) Allows a firm to avoid host country restrictions of FDI
E) Helps a firm to avoid high tariffs and NTB in host countries

Correct Answer:

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