Computer Contractors has given a foreign entity the right to produce and sell its computer parts...

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Computer Contractors has given a foreign entity the right to produce and sell its computer parts...

Computer Contractors has given a foreign entity the right to produce and sell its computer parts in return for a royalty fee on every unit sold. This is called

Multiple Choice

an acquisition.
licensing.
vertical FDI.
a greenfield investment.

business economics

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Answer 1

Answer #1

This is essentially a licensing contract because there is an agreement provided to a foreign entity to produce a particular product and there is a royalty fee for every unit sold by it to be given to the parent company. All other choices do not have a provision of royalty fee.

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Answer 2

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