Final answer:
Franchising is a form of foreign licensing where a franchisor allows foreign businesses to produce and market its products with specific operational guidance, in exchange for franchise and royalty fees.
Step-by-step explanation:
The specialized type of foreign licensing in which a firm expands internationally by offering businesses in other countries the right to produce and market its products according to specific operating requirements is known as franchising. In this business model, the franchisor provides the franchisee with support in many aspects of the business, such as training, supply chain support, and help with setting up operations. In return, the franchisee pays a franchise fee as well as ongoing royalty fees. This method is often chosen by companies looking to expand quickly in foreign markets while maintaining control over how their products and services are offered.
The specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements is called franchising.