Scenario: Sports Stuff, Inc.
Herb Graham is vice president of Sports Stuff, a business that develops, manufactures, and markets sports memorabilia. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe, the company will achieve success there.
-Herb knows that much of the success his company enjoys is due to the patents and copyrights that protect the company's products. Herb has discovered that ________ is an entry mode in which a company that owns intangible property grants another firm the right to use that property for a specified period of time.

Question

Quizplus · Accepted Answer

Licensing is the entry mode in which a company that owns intangible property grants another firm the right to use that property for a specified period of time. In this scenario, Herb Graham can use licensing to expand Sports Stuff, Inc.'s operations into the European market by allowing a European firm to use the company's patents and copyrights for a fee. This will help Sports Stuff, Inc. enter the European market with minimal risk and investment.