Pepsi Cola entered into a long-term contract with a South African beverage company.The contract calls for the South African firm to produce and market Pepsi Cola in South Afric A.Pepsi will receive royalties on each case of beverage sold.This is an example of:
A)licensing.
B)a joint venture.
C)a foreign subsidiary.
D)foreign direct investment.

Question

Quizplus · Accepted Answer

This is an example of licensing, as the South African company has been granted the right to produce and market Pepsi Cola in their country in exchange for paying royalties to Pepsi.

Pepsi Cola Entered into a Long-Term Contract with a South