Question

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called ___________.

A) licensing.B) exporting.C) a strategic alliance.D) a joint venture.E) contract manufacturing.

Answer 1

licensing agreement

Step-by-step explanation:

Licensing agreement -

It is the legal contract between a licensor and a licensee , where the licensor gives the permission to the licensee for the production of certain product or service , and the licensee pays a certain amount , is known as a licensing agreement .

Hence , from the question , the type of agreement showcased in the question is about licensing agreement .