General Mfg.& Tool Co is a small company producing industrial machinery,including a special computer-controlled milling machine capable of producing ball-bearings that can meet the tiniest known industrial specifications.Many firms using this machine sell their output to defence contractors in the USA and Canada,but the output finds its way into a great many consumer goods as well,such as VCRs and automobiles.You are approached as a trade consultant by the president of GMT Co.,and asked to make recommendations about licensing the production of the machines in South-East Asia.Describe what steps GMT Co should take to determine the exportability of their licence,and describe the major advantages of licensing.Further describe for GMT Co.what should go into any good licensing agreement.

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The Answer of General Mfg.& Tool Co is a small company producing industrial machinery,including a special computer-controlled milling machine capable of producing ball-bearings that can meet the tiniest known industrial specifications.Many firms using this machine sell their output to defence contractors in the USA and Canada,but the output finds its way into a great many consumer goods as well,such as VCRs and automobiles.You are approached as a trade consultant by the president of GMT Co.,and asked to make recommendations about licensing the production of the machines in South-East Asia.Describe what steps GMT Co should take to determine the exportability of their licence,and describe the major advantages of licensing.Further describe for GMT Co.what should go into any good licensing agreement.