Licensing generally poses fewer financial and legal risks than foreign direct investment.

Name: Licensing generally poses fewer financial and legal risks than foreign direct investment.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Licensing involves granting permission to use an intellectual property, while foreign direct investment involves setting up operations in a different country. Licensing typically requires less capital and fewer legal and financial obligations compared to foreign direct investment, therefore posing fewer risks.

Licensing Generally Poses Fewer Financial and Legal Risks Than Foreign