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Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the rights to sell Yoplait yogurt in the United States. This is an example of:

a) Licensing
b) Franchising
c) Joint venture
d) Direct investment

1 Answer

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Final answer:

General Mills' payment to Sodima for the rights to sell Yoplait in the U.S. is an example of licensing, which is a business agreement allowing the use of intellectual property for a fee.

Step-by-step explanation:

The agreement between Sodima, a French cooperative, and General Mills, where General Mills pays for the rights to sell Yoplait yogurt in the United States, exemplifies a licensing arrangement. In licensing, the licensor (Sodima) grants the licensee (General Mills) the permission to utilize its intellectual property, such as the Yoplait brand, in exchange for a fee or royalty.

This is distinct from franchising, which typically involves a more comprehensive package of support and control, including operational guidance and ongoing assistance. It also differs from joint ventures, where two or more parties collaborate in a shared business endeavor, and direct investment, which involves establishing or purchasing operations in a foreign country. In this licensing scenario, General Mills gains the right to market and sell Yoplait products without the broader involvement seen in franchising or joint ventures.

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