Which statement identifies a risk of licensing in an international market?
A)The licensor doesn't know enough about the brand.
B)The licensor may misuse trademarks.
C)The licensor has to pay the licensee money to enter the arrangement.
D)The licensor may end up creating its own competition.
E)Locally owned licensees don't know much about the local customers.

Question

Quizplus · Accepted Answer

Licensing in an international market can lead to the licensor inadvertently creating its own competition. This happens when the licensee, after gaining knowledge, experience, and market presence through the licensing agreement, becomes strong enough to compete directly with the licensor.

Which Statement Identifies a Risk of Licensing in an International