The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game design firms with technical specifications for how Nintendo consoles function. The game design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example?

Question

Quizplus · Accepted Answer

This is an example of licensing, where Nintendo licenses its technology and specifications to game design firms, allowing them to create games compatible with Nintendo consoles in exchange for a fee.

The Nintendo Company Manufactures Electronic Video Consoles and Game Cartridges