A company that enters a foreign market by entering into a licensing agreement with a local company
A) will realize location economies.
B) must engage in global strategic coordination.
C) will realize experience curve effects.
D) risks losing control over its technology to the venture partner.
E) must engage in global strategic coordination and will realize experience curve effects.

Question

Quizplus · Accepted Answer

Entering into a licensing agreement with a local company involves sharing proprietary technology and knowledge with the local company. This increases the risk of losing control over the technology to the venture partner.

A Company That Enters a Foreign Market by Entering into a Licensing