If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:
A) licensing.
B) joint venturing.
C) management contracting.
D) exporting.
E) direct investment.

Question

Quizplus · Accepted Answer

Licensing is the transfer of the right to use a company's product or technology to another company in exchange for a fee or royalty. In this case, Wilkinson would be licensing its brand of shavers to Norelco for exclusive rights to sell in Japan in exchange for a 5 percent royalty on all sales.

If Wilkinson Were to Sell Norelco the Exclusive Rights to Produce