Which of the following is a disadvantage associated with licensing?
A)The licensee pays lower wages and sells at lower prices.
B)The licensor may create its own competition.
C)The foreign government dislikes it because it does not increase local employment.
D)This is the most expensive and risky method for global expansion.
E)The firm's brand does not get international exposure

Question

Quizplus · Accepted Answer

Licensing allows the licensee to use the licensor's intellectual property or technology, which may give them a competitive advantage. However, in some cases, licensees may modify the product and enter the market as new competitors to the licensor. This is a disadvantage associated with licensing, as the licensor may end up creating its own competition.

Which of the Following Is a Disadvantage Associated with Licensing