U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of which of the following activities?

Question

Quizplus · Accepted Answer

This is an example of licensing as McDonnell-Douglas has given permission to Mitsubishi Heavy Industries to use its intellectual property in exchange for payment. Contract manufacturing would involve Mitsubishi Heavy Industries actually producing the F-15 fighter planes themselves and importing would involve the physical movement of goods across national borders, whereas franchising involves a more comprehensive transfer of knowledge and business systems, including ongoing support and guidance.

US Plane Manufacturer McDonnell-Douglas Has Authorized Mitsubishi Heavy Industries, a Japanese