Nemmark Fantasy World is a leading water park in Neora. Solaris Creators wants to open a similar water park in its country, Lisdon. To accomplish this, a contractual agreement is made between Nemmark and Solaris. According to the contract, Nemmark will receive 20 percent royalty on ticket sales in exchange for providing Solaris Creators the authority to use Nemmark's brand. In the context of entering a foreign market, this scenario exemplifies the entry mode of _____.
A) turnkey operation
B) licensing
C) joint venture
D) exporting

Question

Quizplus · Accepted Answer

Licensing is the correct answer because it involves a company (Nemmark) giving another company (Solaris Creators) the rights to use its brand, technology, or product specifications in exchange for a fee or royalty, which is exactly what is described in the scenario.

Nemmark Fantasy World Is a Leading Water Park in Neora