________ occurs when a firm legally allows the right to produce its product, to use its production processes, or to use its brand name or trademark to another firm.
A) Licensing
B) Acquisition
C) Internalization
D) Merger

Question

Quizplus · Accepted Answer

Licensing occurs when a firm (the licensor) licenses the right to produce its product, to use its production processes, or to use its brand name or trademark to another firm (the licensee). In return for giving the licensee these rights, the licensor collects a royalty fee on every unit the licensee sells. The licensor also benefits from the arrangement in that the licensee bears the cost and risk of expanding into a foreign market.

________ Occurs When a Firm Legally Allows the Right to Produce