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Question
Which of the following is an advantage of licensing as a mode of entry into foreign markets?
A. It helps a firm to realize substantial experience curve and location economies.
B. It gives the firm tight control over manufacturing, marketing, and strategy.
C. The licensor does not have to bear the development costs and risks associated with opening a foreign market.
D. Firms can easily maintain control over how their technological know-how is used by a licensee.
E. Licensing allows a foreign firm to use profits earned in one country to support competitive attacks in another.
Answer
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