The advantages of using a licensing strategy to participate in foreign markets include
A) being especially well suited to achieve scale economies.
B) being able to charge lower prices than rivals.
C) enabling a company to achieve first-mover advantages quickly and easily.
D) being able to leverage the company's technical know-how or patents without committing significant additional resources to markets that are unfamiliar, politically volatile, economically uncertain, or otherwise risky.
E) being able to achieve higher product quality and better product performance than with an export strategy.

Question

Quizplus · Accepted Answer

Licensing allows a company to leverage its technical know-how or patents without committing significant additional resources to unfamiliar, politically volatile, economically uncertain, or otherwise risky markets. This reduces the level of risk and investment required to enter foreign markets, making it an attractive option for many companies. The other options do not necessarily apply to licensing as a strategy for entering foreign markets.

The Advantages of Using a Licensing Strategy to Participate in Foreign