International Business · Class 11 · CBSE · Commerce Business Studies
An Indian company permits a foreign company to use its patent and technology in return for a fee, without making a direct investment in the foreign c…
Practice question from International Business (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
medium · MCQ · Q-263E58
An Indian company permits a foreign company to use its patent and technology in return for a fee, without making a direct investment in the foreign country. Which mode of international business is this?
- A.LicensingCorrect answer
- B.Wholly owned subsidiary
- C.Contract manufacturing
- D.Joint venture
Solution
Licensing is an arrangement under which one firm permits another firm in a foreign country to use its patents, trademarks, technology or other rights in return for a fee or royalty.
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