Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as ________.
A) joint ownership
B) direct exporting
C) direct investment
D) management contracting
E) licensing

Question

Quizplus · Accepted Answer

Granting a host-country partner the right to use a company's intellectual property, manufacturing process, or other valuable item in exchange for royalties or other compensation is known as licensing. This method of foreign market entry allows the licensor to expand its reach while limiting its financial or legal obligations in the host country.

Providing a Host-Country Partner the Right to Use a Company's