GRM Fast Food Corp.,located in New York,grants Truffle Eateries,a chain of restaurants in Paris,permission to produce and sell GRM's famous pizzas.Truffle Eateries will launch GRM in Paris and sell its products.The international business arrangement of GRM Fast Food Corp.is an example of a ______.

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The international business arrangement of GRM Fast Food Corp. is an example of a franchise. In appropriate circumstances, a domestic firm may choose to grant a foreign firm the means to produce and sell its product. The typical method for controlling these transfers of information is the license or franchise contract. As GRM Fast Food Corp. has granted the foreign firm, Truffle Eateries, the means to produce and sell its product, it has a franchise contract with Truffle Eateries.