TrueFoods, a packaged food manufacturing company, intends to expand its business in another country. However, it wants to do so with limited investment and risk. To this end, it partners with an overseas condiments company. As a result, both TrueFoods and the condiments company generate higher sales by promoting each other's products. Which of the following business forms does this scenario illustrate?

Question

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The scenario illustrates piggybacking, which is when a company partners with another company in a foreign market to leverage its existing distribution network, marketing channels, and/or customer base. This allows the company to expand its presence in the foreign market with limited investment and risk, while also benefiting from the partner company's sales promotion efforts. In this case, TrueFoods partners with an overseas condiments company to promote each other's products and generate higher sales. Outsourcing involves hiring an external party to perform a specific task or function, franchising involves granting a license to a third party to operate a business model, and licensing involves granting permission to another party to use intellectual property.

TrueFoods, a Packaged Food Manufacturing Company, Intends to Expand Its