Pepsi Cola has entered into a long-term contract with a South African beverage business.The contract calls for the South African firm to produce and market Pepsi Cola in South Africa.Pepsi Cola will receive a royalty on each case of soda sold.This is an example of:

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Licensing is a contractual agreement where one company (the licensor) allows another company (the licensee) to use its intellectual property (such as trademarks or patents) for a fee or royalty. In this case, Pepsi Cola has entered into such an agreement with a South African beverage business to produce and market its product in South Africa while receiving a royalty on each case sold. This arrangement does not involve any direct investment or joint venture between the two companies.

Pepsi Cola Has Entered into a Long-Term Contract with a South