A licensing agreement: a. is the best way to protect proprietary technology from future competitors. b. can be greatly impacted by currency exchange rate fluctuations. c. allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country. d. results in two firms agreeing to share the risks and the resources of a new venture

Question

Mckenna Hardy

Business

30 September, 01:33

A licensing agreement: a. is the best way to protect proprietary technology from future competitors. b. can be greatly impacted by currency exchange rate fluctuations. c. allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country. d. results in two firms agreeing to share the risks and the resources of a new venture

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Answers (1)

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Cadence Frederick · Answer 1

c. allows a foreign firm to purchase the right to manufacture and sell a firm's products within a host country.

Explanation:

The licensing agreement is a legal contract between the parties knows as licensor and the licensee, where the licensor allows for the sales of the goods and to apply the brand name of the product or use the patent technology. As it usually refers to a written contract and the payment s termed as loyalty. Any failure to follow the agreement may lead to the termination of the license and the payments.