_____ occurs when a domestic firm legally allows a foreign firm the right to produce its product, to use its production processes, or to use its brand name or trademark.
A) Licensing
B) Acquisition
C) Internalization
D) Merger

Question

Quizplus · Accepted Answer

Licensing occurs when a domestic firm, the licensor, licenses to a foreign firm, the licensee, the right to produce its product, to use its production processes, or to use its brand name or trademark. In return, the licensor collects royalty fees on every unit the licensee sells, or on total licensee revenues. The licensor also benefits from the arrangement in that the licensee bears the cost and risk of expanding into a foreign market.

_____ Occurs When a Domestic Firm Legally Allows a Foreign