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Part (iv) asks about implications of ATC entering into a contractual agreement with Largo Co.
Does the contractual agreement here refers to licensing?
The points which I have thought are not included in the suggested solution.
Will discussion on the disadvantage of licensing such as the contractual agreement may give Largo Co know-how and technology which it can use to compete with ATC after the contract has expired is considered a valid point?
As Largo Co’s proposal is just producing some of the parts required for the engine component, will it be able to make Largo Co compete with ATC?
Is it valid to discuss about advantages of licensing as well? The examiner’s answer seems to focus on negative implications only.
It is from the article written by the examiner, Shishir Malde.
Please find the link below.https://www.accaglobal.com/content/dam/acca/global/pdf/SA_aug10_examinerapP4.pdf
A contractual agreement is an agreement that they are bound by – that they have to keep to.
Since the question specifically asks how the impact of any negative impact may be reduced, it it this that you need to concentrate on (although there is no harm in mentioning positive impacts also).
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