Question

The sharing of technology among companies, a practice called technology ____ , allows access to new technologies that would be expensive to develop independently.

multiple choice question.
A. trading
B. competition
C. licensing
D. acquisitions

Answer 1

The practice of sharing technology among companies is known as technology licensing, which enables access to new technologies without incurring high development costs. It is part of strategies in international trade, specifically intra-industry trade, allowing companies to benefit from economies of scale and specialized knowledge, distinct from acquisitions.

Step-by-step explanation:

The practice of sharing technology among companies is referred to as technology licensing. This approach allows companies to get access to new technologies without the high costs associated with developing them independently. In the context of international trade, high-income economies that engage in intra-industry trade benefit from specialized learning and economies of scale.

Companies in these countries often participate in the sharing of technology to stay competitive and to leverage the benefits from economies of scale and specialized knowledge. The knowledge sharing through technology licensing is a strategic move in business growth and expansion, rather than through means such as acquisitions or trading. Antitrust laws play a role in ensuring that competition remains active by regulating business practices and mergers.