Question

In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property, such as patent and trademark to a manufacturer in a foreign country for a fee:

Options

• Licensing

• Contract manufacturing

• Joint venture

• Public-Private Partnership

Answer 1

Under the licensing model, a domestic manufacturer (licensor) grants a licence to a foreign manufacturer (licensee) to use its intellectual property such as patent and trademark.

Hence, the correct answer is option Licensing.