An advantage of licensing as a method of entering global competition is that the
A)licensee bears most of the costs and risks associated.
B)licensing company has control over its technology.
C)licensing company has control over quality levels.
D)licensing company has lower communication costs.
E)licensee has lower production costs.

Question

Quizplus · Accepted Answer

Licensing allows the licensing company to transfer the costs and risks associated with entering a foreign market to the licensee, who bears the costs of production, marketing, and distribution. This reduces the licensing company's exposure to financial losses and risks.

An Advantage of Licensing as a Method of Entering Global