A company in France makes and sells baby food in France.The product is from a patent held by an American company and the France-based firm pays the American manufacturer a specified amount for each unit sold.These two firms are operating under an exporting agreement.

Question

Quizplus · Accepted Answer

The arrangement described is a licensing agreement, not an exporting agreement. The French company is paying for the right to use the American company's patent to produce and sell the product locally.

A Company in France Makes and Sells Baby Food in France.The