Question

In order to enter the market in eastern​ europe, dnc enterprises enters into a contract with a firm in the ukraine that allows that firm to use its brand​ name, operating​ procedures, and proprietary technology in making its products. this best describes​ _______.

Answer 1

When one enterprise enters the contract with another company and uses the brand name and other aspects for the purpose of production becomes profitable to the both enterprises and this kind of arrangement is called as a licensing arrangement. This helps the both companies by giving a market base and resources for production and gives the other company have extended market and more investments.