question_answer 1)

In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee? (a) Licensing (b) Contract manufacturing (c) Joint venture (d) None of these

Answer:

(a) Licensing refers to permitting another party in a foreign country to produce and sell goods under trademarks, patents or copy rights in lieu of some fee. Example: Pepsi and Coca Cola are produced and sold all over the world by local bottlers in foreign countries through licensing.