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

Question

Quizplus · Accepted Answer

This is an example of licensing, as Pepsi Cola has entered into a contract with a South African firm to produce and market their product in South Africa, while receiving a royalty on each case of soda sold.

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