All of the following are advantages of licensing except which?
A)the foreign country gains employment by having the product manufactured locally
B)the licensee gains information that allows it to start with a competitive advantage
C)the lower risk to the company granting the license compared to direct investment.
D)the licensor's ability to protect its brand name from harm
E)the capital-free entry into a foreign country

Question

Quizplus · Accepted Answer

Under licensing,a company offers the right to a trademark,patent,trade secret,or other similarly valued item of intellectual property in return for a royalty or a fee.The advantages to the company granting the license are low risk and a capital-free entry into a foreign country.The licensee gains information that allows it to start with a competitive advantage,and the foreign country gains employment by having the product manufactured locally.However,should the licensee prove to be a poor choice,the name or reputation of the company may be harmed.

All of the Following Are Advantages of Licensing Except Which