Fruit-of-the-Loom does not own any overseas manufacturing plants, but it lends its name to 45 consumer products that are manufactured and sold in Japan. For permitting the Japanese manufacturer to use the Fruit-of-the-Loom brand name, the U.S. company receives one percent of the Japanese firm's gross sales. Fruit-of-the-Loom used _____ to enter the Japanese market.

Question

Quizplus · Accepted Answer

Fruit-of-the-Loom entered the Japanese market through licensing, which involves allowing another company to use its brand name in exchange for a fee or a percentage of sales, in this case, one percent of the Japanese firm's gross sales.

Fruit-Of-The-Loom Does Not Own Any Overseas Manufacturing Plants, but It