Which one of the following is not the disadvantage of international licensing?
International licensing carries notable strategic risks—such as creating a potential competitor in third-country markets once the license expires, monitoring/agency costs,…
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Which one of the following is not the disadvantage of international licensing?
Answer and explanation
Correct answer D
International licensing carries notable strategic risks—such as creating a potential competitor in third-country markets once the license expires, monitoring/agency costs, and potential loss of quality control ruining brand reputation. 'No detailed involvement with foreign customers' is a structural feature of low-commitment licensing rather than a direct operational risk.
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UGC NET Management