Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.
A) exporting
B) strategic alliance
C) licensing
D) countertrade
E) bill of lading

Question

Quizplus · Accepted Answer

A licensing agreement allows a company to grant permission to another company to use its intellectual property (in this case, the Soccer to the Masses name) in exchange for royalties or other forms of compensation. This allows for global expansion without requiring a large financial commitment, as the Japanese company will bear the costs of manufacturing and distributing the products.

Soccer to the Masses Is Interested in Global Expansion but Does