Which of the Following Is a Drawback of Licensing

C The licensee gains recognition without having to develop a product from scratch. List of the Disadvantages of Licensing 1.

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It increases opportunities for IP theft.

. 7 Which of the following is a drawback of technology licensing. B The licensee runs the constant risk that the licensor will provide inferior service. There will be more opportunities for theft piracy and misuse because you dont have full control over how the licensee conducts operations.

B Licensing will provide the original producer with much foreign marketing experience. Licensing does not benefit firms lacking the capital to expand operations overseas. Most importantly the agreement should include the description of the product or service being licensed the license grant which provides license for use of the intellectual property or asset the obligations of both parties and most importantly the agreement of financial arrangements both minimum.

The license can sever the licensing relationship and become a competitor after gaining access to the licensors technology. As a part of their new business expansion strategies an Italian company. Which of the following is an advantage of licensing.

It cannot be used when a firm possesses some intangible property that might have business. One of the potential drawbacks of technology licensing is the likelihood to create a competitor. One drawback of a licensing arrangement like this is that high costs and risks As part of Starbucks expansion into the European market it acquired the Seattle Coffee chain in Britain.

Many times licensing categories overlap and are not mutually exclusive. In other words a licensing agreement grants the licensee the ability to use intellectual. A licensing agreement is a contract between two parties the licensor and licensee in which the licensor grants the licensee the right to use the brand name trademark patented technology or ability to produce and sell goods owned by the licensor.

A The licensee can sever the licensing relationship and become a competitor after gaining access to the licensors technology. The licensor may lose control over the technology in question to the licensee in case the licensee decides to terminate the contract or break-off. Licensing does not give a firm tight control over manufacturing marketing and strategy.

Which of the following is a drawback of licensing as a mode of entry into foreign markets. It does not help firms that lack capital to develop operations overseas. The licensor has to bear all costs and risks associated with developing a foreign market.

A The licensee is not required to invest money in the business. C It is a relatively inexpensive way to market your product internationally. D It is an extremely expensive and highly involved method of international expansion.

Which of the following is a disadvantage of licensing. Once you begin to license your intellectual properties and products you are exposing yourself to higher levels of exposure. The licensor has to bear all costs and risks associated with developing a foreign market.

Licensing typically involves each licensee setting up. Licensing does not give a firm tight control over manufacturing marketing and strategy. A It ignores the fact that firms invest in a foreign country when demand in that country will support local production.

Which of the following is a drawback of licensing as a mode of entry into foreign markets. Licensing limits a firms ability to coordinate strategic moves across countries. C It fails to identify when it is profitable to invest abroad.

D The licensor earns profits without having to share its. Which of the following is an advantage of licensing as a mode of entry into foreign markets. B The licensor has more control over the licensee than it does in its own operations.

Which of the following is a drawback of technology and licensing. B It does not explain why the first firm in an oligopoly decides to undertake FDI rather than to export or license. Asked Sep 15 2020 in Business by LadyMismatch.

D It ignores the fact that. A disadvantage of licensing is that it does not give a firm the tight control over manufacturing marketing and strategy that is required for realizing experience curve and location economies. Licensing typically involves each licensee setting up its own production operations.

Licensing does not give a firm tight control over manufacturing marketing and strategy. A If quality is compromised it may reflect poorly on the company providing the license. Licensing could provide competitors with valuable technological know-how.

Which of the following is a drawback of licensing as a mode of entry into foreign markets. Licensing can become unprofitable due to trade barriers and transportation costs. A disadvantage of licensing is that it does not give a firm the tight control over manufacturing marketing and strategy that is required for realizing experience curve and location economies.

It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Licensing does not give a firm tight control over strategies.

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