When a firm perceives its technological advantage to be only transitory,when it expects rapid imitation of its core technology by competitors,it might want to:
A)revert to old technologies.
B)engage in exporting on a large scale.
C)license its technology as rapidly as possible to foreign firms.
D)set-up a wholly owned subsidiary.

Question

Quizplus · Accepted Answer

When a firm perceives its technological advantage to be only transitory,when it expects rapid imitation of its core technology by competitors,it might want to license its technology as rapidly as possible to foreign firms to gain global acceptance for its technology before the imitation occurs.By licensing its technology to competitors,the firm may deter them from developing their own,possibly superior,technology.Further,by licensing its technology,the firm may establish its technology as the dominant design in the industry,possibly ensuring a steady stream of royalty payments.

When a Firm Perceives Its Technological Advantage to Be Only