In which international organizational structure would royalties likely be paid to the exporter?
A) Strategic alliance
B) Joint venture
C) Licensing arrangement
D) A green field manufacturing plant
E) Branch office

Question

Quizplus · Accepted Answer

In a licensing arrangement, the exporter grants permission to a foreign partner to use their intellectual property such as patents or technology in exchange for royalty payments. Therefore, royalties would likely be paid to the exporter in this organizational structure.

In Which International Organizational Structure Would Royalties Likely Be Paid