Which of the following is NOT a potential disadvantage of licensing relative to FDI?

A$)$ Possible loss of quality control.

B$)$ Establishment of a potential competitor in thirdcountry markets.

C$)$ Possible improvement of the technology by the local licensee, which then enters the original firm's home market.

D$)$ All of the above are potential disadvantages to licensing.

Which of the following is NOT an advantage to a joint venture?

A$)$ Possible loss of opportunity to enter the foreign market with FDI later.

B$)$ The local partner understands the customs and mores of the foreign market.

C$)$ The local partner can provide competent management at many levels.

D$)$ May be a realistic alternative when $100\%$ foreign ownership is not allowed.

risks are those that affect the MNE at the local or project level, but originate at the country level.

A$)$ Country$-$specific

B$)$ Firm$-$specific

C$)$ Global$-$specific

D$)$ none of the above

is the ability to exercise effective control over a foreign subsidiary within a country's legal and political environment.

A$)$ Political risk

B$)$ Portfolio risk

C$)$ Interest rate risk

D$)$ Governance risk