Question

Foreign _____ involves a firm buying the rights to produce, promote, and use the domestic firm's trademark/patents in a defined geographical area as long as there is agreement on specific operating procedures. Answer
a. strategic contracting
b. franchising
c. exporting
d. outsourcing

Answer 1

The answer is B. Franchising

Licensing also use a similiar Model. But The Difference is When you do a Franchising , The company that own the trademark will give as support to aid the franchise. They also make sure that each branches do not cannibalized each others' profit.

In a Licensing model, the company who own the trademark won't give you any support whatsoever.