According to the text, a disadvantage of licensing is that:
A) it prevents a firm from importing.
B) it is difficult to ensure quality control of the production process.
C) it prevents a firm from exporting.
D) none of the above

Question

Quizplus · Accepted Answer

Licensing involves granting the right to produce and sell a product to a foreign firm. However, it can be difficult for the licensor (the original company) to ensure that the licensee (the foreign firm) is maintaining adequate quality control in the production process. This can lead to a decline in the reputation of the product and the brand.

According to the Text, a Disadvantage of Licensing Is That