What is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market?
A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Question

Quizplus · Accepted Answer

Licensing is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market. Exporting refers to the act of sending goods or services produced in one country to another country. Direct investment involves a company setting up a wholly-owned subsidiary in a foreign country. Joint venture refers to a business arrangement between two or more companies to undertake a specific project or task. Strategic alliance is a broad term that refers to any kind of cooperation or collaboration between two or more companies for mutual benefit.

What Is the Term Used When a Company Lets a Foreign