All of the following are disadvantages of licensing EXCEPT:
A)the licensor reduces its potential profits gained from product sales.
B)the foreign country gains employment by having the product manufactured locally.
C)the licensor forgoes control of its product.
D)should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E)the licensor may be creating its own competition.

Question

Quizplus · Accepted Answer

The option "the foreign country gains employment by having the product manufactured locally" is not a disadvantage of licensing, rather it is a benefit as it contributes to job creation and economic development in the foreign country. The other options listed all represent potential drawbacks of licensing.

All of the Following Are Disadvantages of Licensing EXCEPT