Exploiting foreign market opportunities

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One drawback associated with internalization theory is that Group of answer choices licensing may result in a firm giving away valuable technological know-how to a potential foreign competitor. licensing has no major drawbacks as a strategy for exploiting foreign market opportunities. a problem with licensing arises when the firm's competitive advantage is based on its products rather than on the manufacturing capabilities that produce those products. licensing is always more profitable than FDI. licensing gives a firm tight control over manufacturing, marketing, and strategy in a foreign country.

Reference no: EM133273990

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