Question

Bubble Gum Inc of Chicago sold the rights to sell its patented toys outside the United States to an Australian Company, Phoenix, Inc in return, Phoenix, Inc. has to pay 40 percent of its total sales of the patented toys as royalties to Bubble Gum Inc. Which approach to entering international markets is Bubble Gums Inc. using in this scenario?

Answer 1

Answer and Explanation:

From the following given case or scenario, we can state that the Bubble Gums Inc. is using Licensing approach to enter the international market. Licensing approach is referred to as a business or organization arrangement under which one organization or company tends to gives the another organization or company permission in order to to manufacture its commodity, product or services for the specified payment .