In a(n)_____,a mode of entry into foreign markets,a firm grants the rights to intangible property to another firm for a specified period,and in return,receives a royalty fee.
A) licensing agreement
B) turnkey project
C) acquisition
D) joint venture
E) wholly owned subsidiary

Question

Quizplus · Accepted Answer

A licensing agreement is a mode of entry into foreign markets in which a firm grants the rights to intangible property (such as patents, trademarks, or copyrights) to another firm for a specified period, and in return, receives a royalty fee. This allows the licensee to produce and sell products using the intellectual property of the licensor, without the licensor having to invest in the foreign market themselves. This option is often used when the firm is not interested in investing in physical assets in the foreign market.

In A(n)_____,a Mode of Entry into Foreign Markets,a Firm Grants