28. Which of the following statements is true about licensing? A. In a typical arrangement, the licensor will allow the licensee to use a patent, a trademark, or proprietary information in exchange for a fee. B. Companies that spend a relatively large share of their revenues on research and development (R&D) are likely to be licensees. C. Licenses are uncommon among large firms seeking to acquire technology to bolster an existing product. D. A license is a very high-cost way of gaining and exploiting foreign markets.
28. Option A
Explanation: In licensing, the licensor allows
the licensee to use its intellectual properties like trademarks,
patents or proprietary information for a fee. Licensing is an
import mode of international expansion by firms without making much
investment in the foreign market.