All of the following are disadvantages of licensing except which?
A) The licensor has reduced potential profits compared to direct investment.
B) The foreign country does not benefit from increases in local employment for product manufacturing.
C) The licensor forgoes control of its product.
D) Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E) The licensor may be creating its own competition.

Question

Quizplus · Accepted Answer

Licensing can actually increase local employment in the foreign country as the licensee may need to hire local workers to manufacture and distribute the product.

All of the Following Are Disadvantages of Licensing Except Which