According to the textbook,a firm will favor _____________ over _______________ when it wishes to maintain control over its technological know-how,or over its operations and business strategy.
A) foreign direct investment; exporting
B) licensing; foreign direct investment
C) foreign direct investment; licensing
D) exporting; foreign direct investment
E) exporting; licensing

Question

Quizplus · Accepted Answer

A firm will favor foreign direct investment over licensing when it wishes to maintain control over its technological know-how or over its operations and business strategy. This is because foreign direct investment involves the firm directly investing in and owning facilities in the foreign country, allowing it to maintain greater control over its operations and protect its intellectual property more effectively than through licensing, which involves granting another company the rights to use its intellectual property.

According to the Textbook,a Firm Will Favor _____________ Over _______________

According to the Textbook,a Firm Will Favor _ Over ___