Vinson Bicycles, a U.S. firm, is considering the idea of entering the EU market through an international licensing agreement. What is the main disadvantage of this entry method for Vinson?
A) significant financial and political risks
B) foreign investment restrictions
C) limited market opportunities
D) high tariff costs

Question

Quizplus · Accepted Answer

International licensing agreements often result in limited market opportunities because the licensor (Vinson Bicycles) may have less control over the marketing and distribution of their products, potentially limiting their ability to fully capitalize on the market.