Which of the following is an example of licensing?
A) An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada.
B) An Indian automobile manufacturing company, buys engines from a Japanese manufacturer for its environment friendly cars.
C) A South-Korean consumer electronics manufacturer produces the screens for its brand of television and sends orders to a factory in China to manufacture the casing for the television.
D) A U.K-based motorcycle manufacturer, produces limited-edition customizations of the company's stock models and sells it to customers around the world.

Question

Quizplus · Accepted Answer

Licensing refers to the process of giving the right to use a particular technology or product to another company for a fee or royalty. In this case, the American electronics firm is giving the right to a new process for manufacturing e-book readers to the Canadian electronics manufacturer, which is an example of licensing. Option B is an example of outsourcing, option C is an example of offshoring, and option D is an example of customization.

Which of the Following Is an Example of Licensing