Herman owns a highly regarded company that manufactures office chairs. He has decided to try to expand his company overseas by selling the rights to manufacture and sell his furniture using his designs and brand in exchange for a fee and royalties. What kind of international business expansion strategy is this?

(1 point)
Responses

exporting

exporting

contract manufacturing

contract manufacturing

licensing agreement

licensing agreement

joint venture

1 answer

The international business expansion strategy that Herman is pursuing by selling the rights to manufacture and sell his furniture using his designs and brand in exchange for a fee and royalties is a licensing agreement.