One problem of licensing is that it does not give the firm tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.

Question

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According to the internalization theory,licensing does not give a firm the tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.Unlike a wholly owned subsidiary,a licensee would probably not appreciate the firm controlling its manufacturing,marketing,and strategic processes.

One Problem of Licensing Is That It Does Not Give