Justifies reason why firm might prefer licensing to FDI

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Reference no: EM131094627

Which of the following justifies the reason why a firm might prefer licensing to FDI?

a. Licensing reduces the potential risks of creating a future competitor.

b. Licensing results in the licensor retaining control over technical know-how.

c. Licensing gives the licensor a tight control over the operations of the licensee in the foreign nation.

d. Licensing allows the firm to take advantage of the differences in factor costs across countries.

e. Licensing results in the licensee bearing the costs and risks

Reference no: EM131094627

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