Question

Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage. Discuss whether you agree or disagree with this statement. Explain your answer in a well-constructed and cogent response.

Answer 1

Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement

Explanation:

when a licensing arrangement is structured in such a way that ir  reduces the risks of a firm's technological know-how being expropriated by licensees, then licensing may be said to be appropiate.

For example : when a firm perceives its technological advantage can be intimated by its competitor ,in such case the company gets its technology licensed before the imitation of its technology occur.By doing so the firm may deter its competitors  from developing their own, possibly superior, technology. And by licensing its technology the firm may be able to establish its technology as the dominant design in the industry. In turn, this may ensure a steady stream of royalty payments.

so we can say that Licensing proprietary technology to foreign competitors is the best way to give up a firm's competitive advantage-I agree with this statement