Licensing is best described as:
A)a nonequity method of international business in which an entrepreneur contracts his or her
Management techniques and skills to a (foreign)purchasing company.
B)a method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners.
C)a method that involves giving a foreign manufacturer the right to use a patent,technology,production process,or product in return for the payment of a royalty.
D)an equity partnership that involves selling patents to foreign governments.

Question

Quizplus · Accepted Answer

Licensing involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment of a royalty. Option A describes contracting management skills, while option B describes foreign ownership of infrastructure. Option D describes selling patents to foreign governments, which is not the same as licensing.

Licensing Is Best Described As