Question

What is an entry mode that involves a licensor, who shares the brand name, technology, and know-how with a licensee in return for royalties?

1) Franchising
2) Licensing
3) Joint Venture
4) Direct Exporting

Answer 1

Licensing is an entry mode that involves a licensor sharing brand name, technology, and know-how with a licensee in exchange for royalties.

Step-by-step explanation:

The entry mode involving a licensor who shares the brand name, technology, and know-how with a licensee in return for royalties is called Licensing.

In licensing, the licensor grants the licensee the right to use their intellectual property, such as trademarks or patents, in exchange for payment.

This allows the licensee to benefit from the reputation and expertise of the licensor, while the licensor receives royalties for the use of their intellectual property.