Canadian companies seeking more involvement in international business generally do not choose licensing arrangements because they cannot charge high enough fees to make the initiative worthwhile.

Question

Quizplus · Accepted Answer

This statement is inaccurate. Licensing arrangements can be a beneficial option for Canadian companies seeking international involvement as they provide a way to leverage existing intellectual property and earn royalties without the extensive costs associated with production and distribution. The fees charged in licensing agreements can be negotiated and may still result in profitable returns for the licensor.

Canadian Companies Seeking More Involvement in International Business Generally Do