What are three major drawbacks associated with licensing?

Licensing is limited to the service industry.

Licensing does not allow a firm to establish international trade ties.

Licensing can potentially damage a company's established brand.

Licensing does not allow a company to control the marketing strategy used in the foreign country.

Licensing may give away valuable technological know$-$how to a potential foreign competitor.

Licensing requires setting up a business where it has never existed before.