FitForLife Gym, a large U.S. based fitness center, receives royalty payments from WeWelness, a small Canadian company, for using its name and gym equipment. The FitForLife Gym brand is well known across the world and many fitness centers use its brand to attract customers. This form of agreement is an example of _____.
A) direct foreign investment
B) exporting
C) licensing
D) protectionism

Question

Quizplus · Accepted Answer

This is an example of licensing, in which one company allows another company to use its name or intellectual property in exchange for royalty payments.

FitForLife Gym, a Large U