A licensing agreement:
A) results in two firms agreeing to share the risks and the resources of a new venture.
B) is the best way to protect proprietary technology from future competitors.
C) allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country.
D) can be greatly impacted by currency exchange rate fluctuations.

Question

Quizplus · Accepted Answer

A licensing agreement allows a foreign firm to manufacture and sell a company's products in a host country, typically in exchange for royalties or fees.

A Licensing Agreement