Ask Question
BusinessBusiness
2 June, 20:22

Which of the following is a likely reason for choosing FDI instead of licensing?

a. The company is in the process of shutting down all its operations.

b. Sharing intellectual know-how with a potential foreign rival could be risky.

c. The company's lower level employees are very keen on traveling abroad at the expense of the company.

d. The company's competitive edge lies in things that are easy to license (e. g. software).

+5
Answers (1)
  1. 2 June, 20:23
    0
    The correct option is B

    Explanation:

    FDI is an investment in the business through an investor from another country and control is with the foreign investor over the company purchased.

    Licensing means all the contracts to which the third part has granted or licensed any right to its subsidiaries or company.

    So, the reason for preferring FDI instead of license is sharing the intellectual know how with the foreign rival might be risky as this is a limitation in licensing.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is a likely reason for choosing FDI instead of licensing? a. The company is in the process of shutting down all its ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest
Answers (1)
Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6 comma 000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $10.00 , which includes transportation. a.
Answers (1)
Stress itself is always negative. true or false?
Answers (1)
The price of a good will tend to fall when a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good increases. d. the supply of the good decreases.
Answers (1)
At December 31, 2018, Moonlight Bay Resorts had the following deferred income tax items: Deferred tax asset of $54 million related to a current liability Deferred tax asset of $36 million related to a noncurrent liability Deferred tax liability of
Answers (1)
New Questions in Business
On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30.
Answers (2)
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year.
Answers (1)
A high school currently require students to purchase a parking pass in order to park in the parking lot, but for the coming year they are considering letting all students park for free.
Answers (2)
An oligopolistic market structure is distinguished by several characteristics, one of which is a difficult entry. Which of the following are other characteristics of this market structure? Check all that apply. a. Market control by many small firms.
Answers (1)
Who should you' alert that you are interviewing for jobs? A. Your references B. Other possible employers C. Your classmates D. Your present employer
Answers (1)
Home » Business » Which of the following is a likely reason for choosing FDI instead of licensing? a. The company is in the process of shutting down all its operations. b. Sharing intellectual know-how with a potential foreign rival could be risky. c.
Sign Up Forgot Password?