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 can lead to the licensor creating its own competition if the licensee becomes a competitor after gaining access to the licensor's technology or brand.

Which of the Following Is a Disadvantage Associated with Licensing