According to the internalization theory,all of the following are drawbacks of licensing as a strategy for exploiting foreign market opportunities except:
A)licensing does not grant control over manufacturing,marketing,and strategy is granted to a licensee in return for a royalty fee.
B)licensing may result in a firm's giving away its know-how to a potential foreign competitor.
C)licensing does not give the firm the tight control over manufacturing,marketing,and strategy that may be required to profitably exploit its advantage.
D)a firm's capabilities such as management,marketing,and manufacturing are often not amenable to licensing.

Question

Quizplus · Accepted Answer

Licensing does grant control over manufacturing, marketing, and strategy to a licensee, which is a drawback, but the statement in option A is phrased as if it does not grant control, making it the exception.

According to the Internalization Theory,all of the Following Are Drawbacks