A local water treatment company has a number of trade secrets on its highly-effective water treatment chemical.The company chooses to sign a deal with a firm in India,and in turn,the Indian firm will sell the product,and offer a percentage back to the Canadian company.The Canadian company is operating under which pretense:

Question

Quizplus · Accepted Answer

This is an example of licensing, where the Canadian company is sharing its trade secrets and allowing the Indian firm to sell the product in exchange for a percentage of the profits. Direct exporting would involve the Canadian company selling the product directly to customers in India, while indirect exporting would involve selling through intermediaries such as agents or distributors. Contract manufacturing would involve the Canadian company outsourcing the production of the product to the Indian firm.

A Local Water Treatment Company Has a Number of Trade