ABC Company in the United States has given exclusive rights to XYZ Company in Switzerland to manufacture its products.This is an example of ________.
A) foreign direct investment
B) a licensing arrangement
C) a strategic alliance
D) an import-export relationship

Question

Quizplus · Accepted Answer

This is an example of a licensing arrangement, where one company (ABC Company) gives another company (XYZ Company) in a different country the right to manufacture its products exclusively. This allows the licensee (XYZ Company) to use the licensor's (ABC Company's) brand and technology to produce and sell the products in that country, while the licensor receives royalties or other forms of compensation.

ABC Company in the United States Has Given Exclusive Rights