Licensing is NOT attractive to which of the following firms?
A)firms lacking the capital to develop operations overseas
B)firms unwilling to commit substantial financial resources to an unfamiliar market
C)firms requiring tight control of operations for realizing experience curve and location economies
D)firms wanting to explore markets but prohibited from doing so by investment barriers
E)firms with intangible properties with business applications that it does not want to develop itself

Question

Quizplus · Accepted Answer

Firms requiring tight control of operations for realizing experience curve and location economies would prefer to keep their operations in-house rather than licensing it to another firm. Licensing involves giving up some degree of control over the operations, which may hinder the firm's ability to achieve these economies of scale.

Licensing Is NOT Attractive to Which of the Following Firms