Question 14 1 pts Executives at Gator Beer, a U.S. firm, have decided to enter t

Question

Question 14 1 pts Executives at Gator Beer, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Beijing. Which of the following statements, if true, would most likely undermine this decision? Gator Beer is concerned about protecting its unique beverage formula to prevent duplication Gator Beer successfully entered the European and Australian markets last year Gator Beer typically relies on freight forwarders to handle global shipments Gator Beer is low on capital due to a recent expansion of its domestic production plant

Explanation / Answer

The right answer is option 1: Gator beer is concerned about protecting its unique beverage formula to prevent duplication.

Explanation: In international business, licensing involves a company providing rights to another company in a foreign country to manufacture and sell products under its trademarks and the brand names. If Gator beer is concerned about protecting its unique beverage formula, it will not enter into licensing with another manufacturer as licensing will require sharing the formula with the Chinese company.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.