While negotiating licensing agreements,which of the following refers to the costs incurred in the foreclosure of other sources of profit,such as exports or direct investment?

Question

Quizplus · Accepted Answer

Opportunity costs refer to the costs incurred due to the foregone opportunities of generating profits from other sources. In the context of negotiating licensing agreements, it refers to the costs associated with not being able to export products or invest directly in a foreign market due to the licensing agreement. Transfer costs refer to the expenses of transferring goods or services from one entity to another, R&D costs refer to research and development expenditures, and sunk costs refer to expenses that cannot be recovered if a project is abandoned.

While Negotiating Licensing Agreements,which of the Following Refers to the Costs