Question

When it comes to foreign markets, Matthews Toys identifies licensees in various countries who produce and sell the company's products in their countries in return for a royalty fee on every unit sold. Matthews Toys' approach is risky because of the problems associated with Group of answer choices

Answer 1

Sharing valuable technological know-how with a potential competitor

Step-by-step explanation:

Since in the question it is mentioned that the Matthews toys would be identified in different countries that produced and sell in return of the royalty fee on each and every units sold

Here the Matthew approach is risky as the technological know-how would be shared with a competitor which would become for the company

Therefore the above represents the answer