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Advantages and disadvantages of FDI

State advantages and disadvantages of FDI as opposed to the licensing agreement with the foreign partner?

E

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Main benefit of the FDI over licensing agreement with the foreign partner is that it offers protection against the possible interlopers. Main disadvantage of FDI is that it is time consuming and costly to develop the foreign presence in this manner and FDI is possibly more vulnerable to the political risk.

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