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Wonder Cat Licensing

Question 38

Multiple Choice

Wonder Cat Licensing
Wonder Cat is a popular new cartoon series created by the All Cartoon Channel (ACC) . Currently, the only Wonder Cat items available for sale are shirts sold exclusively through the ACC website. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions.
-Which of the following most likely supports an ACC decision not to enter a licensing agreement with the Chinese firm?


A) ACC is considering entering the Chinese market through FDI in the future.
B) ACC desires a low-risk, low-cost strategy to internationalize the Wonder Cat character.
C) The popularity of the Wonder Cat character in China would generate high royalties.
D) ACC wants to maintain firm control of how the Wonder Cat character is used.

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