The manufacturer of Marlboro cigarette has given Japan Tobacco the legal right to use its trademarks and patents to manufacture Marlboro cigarettes in Japan.For this right,Japan Tobacco pays a fee.This is an example of the use of _____ to enter an international market.

Question

Quizplus · Accepted Answer

Licensing is a strategy in which one company (the licensor) allows another company (the licensee) to use its intellectual property (such as trademarks and patents) for a fee. In this case, the manufacturer of Marlboro cigarettes (the licensor) has given Japan Tobacco (the licensee) the legal right to use its trademarks and patents to manufacture Marlboro cigarettes in Japan in exchange for a fee. Therefore, this is an example of the use of licensing to enter an international market.

The Manufacturer of Marlboro Cigarette Has Given Japan Tobacco the Legal