LyTV, a large U.S. based broadcast network, receives royalty payments from TipTV, a small Ukrainian broadcast network, for using its channels and television programs. TipTV hopes to improve the viewership of its network by making use of LyTV's popularity. This form of agreement is an example of _____.
A) direct foreign investment
B) exporting
C) licensing
D) protectionism

Question

Quizplus · Accepted Answer

The agreement between LyTV and TipTV involves licensing. Licensing refers to an agreement where one company (licensor) allows another company (licensee) to use its trademarks, patents, technology, or other resources in exchange for royalties or other forms of compensation. In this case, LyTV is allowing TipTV to use its channels and television programs in exchange for royalty payments.

LyTV, a Large U