Sodima is a French cooperative that owns the name, the trade secrets, and the patents of Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of _____.
A)licensing
B)a global joint venture
C)exporting
D)a strategic alliance
E)direct investment

Question

Quizplus · Accepted Answer

This scenario involves licensing, which is when a company pays for the right to use intellectual property (such as a trademark, trade secrets, or patents) owned by another company. General Mills is paying Sodima for the right to sell Yoplait in the US, but they do not own the brand or have any ownership stake in Sodima. This is a common strategy for companies that want to expand into new markets quickly and without the risks and costs associated with direct investment or acquisitions.

Sodima Is a French Cooperative That Owns the Name, the Trade