If a firm's competitive advantage is based on control over proprietary technological know-how,licensing and joint venture arrangements are preferred methods of foreign market entry.

Question

Quizplus · Accepted Answer

Licensing and joint venture arrangements can lead to the sharing of proprietary technological know-how with partners, potentially eroding the firm's competitive advantage. Direct investment or exporting are often preferred to protect proprietary information.

If a Firm's Competitive Advantage Is Based on Control Over