The mechanism that U.S.corporation can use to allow foreign firms to sell in restricted markets while using the original design is
A)franchising.
B)joint venture.
C)licensing.
D)subsidiary.

Question

Quizplus · Accepted Answer

Licensing is the mechanism where a U.S corporation can allow foreign firms to sell in restricted markets while using the original design. It can be done through an agreement where the U.S corporation grants permission to the foreign firm to manufacture and sell their product in a particular market, while retaining the ownership of the product design and technology. This allows the U.S corporation to earn royalties from the foreign firm and also penetrate restricted markets without setting up operations there.

The Mechanism That U