BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An international licensing agreement allows foreign firms, either exclusively or non-exclusively, to manufacture a proprietor’s product for a fixed term in a specific market.

Detailed explanation-2: -Selling to U.S. Free Trade Agreement (FTAs) partner countries can help your company to enter and compete more easily in the global marketplace through reduced trade barriers.

Detailed explanation-3: -Licensing enables a firm to enter a foreign market quickly and poses fewer risks than setting up a foreign manufacturing facility. Furthermore, it allows parties to overcome tariff and non-tariff barriers trade.

Detailed explanation-4: -Allowing a company in a different country or region to manufacture goods or provide services to which the right to apply a company’s trademark is granted through a trademark license agreement allows a company to expand into that territory.

Detailed explanation-5: -For example: Under licensing system, Coca-Cola and Pepsi are globally produced and sold, by local bottlers in different countries. In finer terms, it is the simplest form of business alliance, wherein a company rents out its product based knowledge in exchange for entry to the market.