COMPS Exam $-28/$June$/2024-$ ATMS $($UAE$)$

ashboard $/$ My courses $/$ COMPS June $28-2024/$ Topic $1/$ COMPS Exam $-28\mathrm{.}06\mathrm{.}2024$

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According to the internalization theory, all of the following are drawbacks of licensing as a strategy for exploiting foreign market opportunities except:

a$.$ Licensing does not grant control over manufacturing, marketing, and strategy is granted to a licensee in return for a royalty fee.

b$.$ Licensing may result in a firm's giving away its know$-$how to a potential foreign competitor.

c$.$ A firm's capabilities such as management, marketing, and manufacturing are often not amenable to licensing.

d$.$ Licensing does not give the firm the tight control over manufacturing, marketing, and strategy that may be required to profitably exploit its advantage.

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