Licensing and contract manufacturing types of strategies are used best in
A) Small-sized companies
B) Companies large enough to have a combination of international strategic activities
C) Firms with broadly diversified products in high margin industries
D) Firms with highest level of commitment to international markets

Question

Quizplus · Accepted Answer

Licensing and contract manufacturing strategies are typically used by companies that are large enough to engage in international strategic activities. These strategies involve partnerships and agreements between companies in different countries, which require a certain level of resources and infrastructure to manage effectively. Therefore, smaller companies may not have the capabilities to use these strategies, while firms that are highly committed to international markets may opt for more direct investment strategies. Similarly, companies with broadly diversified products in high margin industries may prefer to use other strategies that allow them to maintain greater control over their intellectual property and brand image.

Licensing and Contract Manufacturing Types of Strategies Are Used Best