GENERAL KNOWLEDGE

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: -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.

Detailed explanation-3: -International licensing (foreign licensing) is defined as the process of granting a company the right to manufacture, market, and sell another company’s products in a foreign country. This type of international licensing agreement is between two companies that are based in different countries.

Detailed explanation-4: -Licensing can be defined as a contract or agreement between two companies, where one company permits another company to manufacture its products under specified conditions and for a specified payment.

Detailed explanation-5: -Licensing or franchising Licensing and franchising are both entry modes that require relinquishing some control and working with a local partner. International licensing is a cross border agreement that permits organizations in the target country the rights to use the property of the licensor.