Why should a high-tech firm avoid selecting licensing as a mode of entry?
A)Threat of creating efficient partners
B)Risk of losing control over technology
C)Fear of rapid imitation of core technology
D)Lack of a transitory technological advantage
E)Inability to deter development costs

Question

Quizplus · Accepted Answer

The attractions of licensing are frequently outweighed by the risks of losing control over technology, and if this is a risk, licensing should be avoided, if a high-tech firm wants to set up operations in a foreign country to profit from a core competency in technological know-how.

Why Should a High-Tech Firm Avoid Selecting Licensing as a Mode