All of the following are disadvantages of licensing except which?
A) The licensor has reduced potential profits compared to direct investment.
B) The licensor incurs higher costs for product manufacturing in the foreign country.
C) The licensor forgoes control of its product.
D) Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
E) The licensor may be creating its own competition.

Question

Quizplus · Accepted Answer

Licensing typically involves the licensee handling manufacturing, so the licensor does not incur higher manufacturing costs in the foreign country.

All of the Following Are Disadvantages of Licensing Except Which