Granting a foreign entity the right to produce and sell the firm's product in return for a royalty fee on every unit the foreign entity sells is called FDI.

Question

Quizplus · Accepted Answer

Granting the right to produce and sell the firm's product in return for a royalty fee is called licensing, not FDI (Foreign Direct Investment). FDI involves a direct investment in a foreign company or facility.

Granting a Foreign Entity the Right to Produce and Sell