Which of the following grants the rights to a firm in the host country to either produce or sell a product,or both?
A) international licensing agreement
B) voluntary export restraint
C) memorandum of association
D) letter of credit

Question

Quizplus · Accepted Answer

An international licensing agreement is a contract in which the licensor grants the rights to a foreign firm in the host country to either produce or sell a product, or both. The licensor retains ownership of the product or technology and receives royalties or fees for its use by the licensee. This is a common mode of entry for firms that want to expand their business in foreign markets without making significant investments in plant and equipment.

Which of the Following Grants the Rights to a Firm