Korea's Samsung invested some $500 million to build television tube plants in Tijuana,Mexico.This form of international business is aptly named international licensing.

Question

Quizplus · Accepted Answer

International licensing refers to a contractual agreement, where a company in one country allows another company in a different country to use its intellectual property, such as patents, trademarks, or technology, in exchange for royalties or fees. Samsung's investment in building TV tube plants in Tijuana, Mexico, is an example of foreign direct investment, where a company invests in building and operating facilities in a foreign country, rather than licensing its technology or products.

Korea's Samsung Invested Some $500 Million to Build Television Tube