Henry was having a few friends over for dinner, many of whom Henry knew from an international management association. Henry's company provides services to create detailed maps of world areas from satellites, which the firm then sells via the Internet to firms, countries, and others around the world. One of his guests, Tamia, bakes cakes for a living. Her recipes are so well liked that her company has grown dramatically. She has just sold the right to manufacture her cakes to a firm in eastern Alpland. Another friend, Chang, is a director at InSpiral, and his wife, Chloe, has contracted with the breakfast chain Flapjack Frank's to open a branch in their state, bearing all the preliminary expenses and development costs. Chang also announced that InSpiral and another company, McElwee's, are starting a new venture. Finally, Kamala works for New Frontier technologies, which is headquartered in her home country, and is soon to go abroad to work in New Frontier's new facility, which is an independent company that New Frontier owns and controls in another country. The guests were discussing how their companies decided to "go global." Which of the following ways of entering into the global marketplace is Tamia's company using?

Question

Quizplus · Accepted Answer

Tamia's company sold the right to manufacture her cakes to a firm in eastern Alpland. This is an example of licensing, where one company grants permission to another company to use its intellectual property, such as a patent or trademark, in exchange for a fee or royalty.

Henry Was Having a Few Friends Over for Dinner, Many