A company that enters a foreign market by entering into a licensing agreement with a local company
A) can realize location economies.
B) can engage in global strategic coordination.
C) can realize experience-curve effects.
D) risks losing control over its technology to the venture partner.
E) can engage in global strategic coordination and realize experience-curve effects.

Question

Quizplus · Accepted Answer

Licensing agreements involve sharing technology with a local company, which may lead to loss of control over the technology by the foreign company. Although licensing can provide benefits such as lower risk and reduced investment, it is not likely to provide location economies, global strategic coordination, or experience-curve effects.

A Company That Enters a Foreign Market by Entering into a Licensing