Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as
A) exporting.
B) licensing.
C) direct investment.
D) manufacturing in foreign countries.
E) none of the above.

Question

Quizplus · Accepted Answer

This is an example of licensing, which involves a company allowing another company (in this case, a Canadian firm) to use its name, formula, and brands in exchange for a payment (royalty). Exporting involves selling products to other countries, direct investment involves a company investing directly in a foreign market, and manufacturing in foreign countries involves producing goods in another country.

Miller Beer Allows a Canadian Firm to Use Its Name