A licensing arrangement is a cooperative partnership in which firms choose foreign individuals to manufacture or market their products in another country.

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A licensing arrangement involves a contract between two firms where one firm grants the other the right to use their intellectual property (such as trademarks, patents, or copyrights) in a specific market or territory, usually in exchange for royalties or other fees. The foreign firm, known as the licensee, is then authorized to manufacture or market the products under the original firm's brand name or intellectual property.

A Licensing Arrangement Is a Cooperative Partnership in Which Firms