A Canadian software company that specializes in developing computer games enters into an agreement with a Japanese software company.Under this agreement,the Japanese company has the right to manufacture and sell the Canadian company's games in Japan.This agreement is an example of _____.
A)countertrade
B)foreign licensing
C)international production
D)direct exporting

Question

Quizplus · Accepted Answer

This agreement is an example of foreign licensing, where the Canadian company licenses its intellectual property rights (the right to manufacture and sell its games) to the Japanese company in exchange for royalties or other agreed-upon compensation.

A Canadian Software Company That Specializes in Developing Computer Games