Licensing would be a good option for firms in which of the following industries?
A)High-technology industries in which protecting firm-specific expertise is of paramount importance and licensing is hazardous.
B)Global oligopolies,in which competitive interdependence requires that multinational firms maintain tight control over foreign operations.
C)Industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations.
D)In fragmented,low-technology industries in which globally dispersed manufacturing is not an option.

Question

Quizplus · Accepted Answer

Licensing is a good option for firms in fragmented, low-technology industries in which globally dispersed manufacturing is not an option. In such industries, licensing enables companies to expand their market share by allowing others to use their technology or intellectual property, while avoiding the costs and risks associated with international expansion. In contrast, licensing may be hazardous in high-technology industries where protecting firm-specific expertise is of paramount importance, or in global oligopolies where maintaining tight control over foreign operations is necessary. For industries with intense cost pressures, multinational firms may still prefer tight control over foreign operations, making licensing less appealing.

Licensing Would Be a Good Option for Firms in Which