Licensing gives a firm tight control over the manufacturing,marketing,and strategy that is required for realizing experience curve and location economies.

Question

Quizplus · Accepted Answer

Licensing allows a firm to grant permission to another party to use its proprietary products, technology, or intellectual property in exchange for royalties or other compensation. However, licensing does not provide tight control over manufacturing, marketing, and strategy, which are critical components for realizing experience curve and location economies. Therefore, option B is correct.

Licensing Gives a Firm Tight Control Over the Manufacturing,marketing,and Strategy