Question

Advantages and disadvantages of fdi as compared to a licensing agreement with a foreign partner

Answer 1

Advantages:

The main advantages of the FDI as compared to over the licensing agreement with a foreign partner is that it provides protection against the possible interlopers. On the other side we can say the Advantages of FDI as opposed to licensing agreement. Lower costs of the supplying host country with the firm's products. Thus the greater control of the product marketing or strategy.

Disadvantages:

 the main disadvantages of FDI is that it is costly as well as time consuming to establish the foreign presence in this manner and FDI probably more vulnerable to the political risk.