_____ involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold.
A)Horizontal FDI
B)Licensing
C)Vertical FDI
D)Greenfield investment

Question

Quizplus · Accepted Answer

Licensing involves granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit sold. Horizontal FDI is when a company invests in the same industry abroad, while vertical FDI is when a company invests in a different stage of the production process abroad. Greenfield investment is when a company builds a new facility abroad.

_____ Involves Granting a Foreign Entity the Right to Produce