Which of the following is NOT a potential disadvantage of licensing relative to FDI?
A)Possible loss of quality control.
B)Establishment of a potential competitor in third-country markets.
C)Possible improvement of the technology by the local licensee, which then enters the original firm's home market.
D)All of the above are potential disadvantages to licensing.

Question

Quizplus · Accepted Answer

All the options listed are potential disadvantages of licensing relative to FDI, as they involve risks related to control, competition, and technology.

Which of the Following Is NOT a Potential Disadvantage of Licensing