Question

Jespher, Inc., allows Hertonz, a foreign organization, to take charge of both manufacturing and distributing one or more of its products in Thailand in return for a negotiated fee. This is an example of ________.

Answer 1

Licensing

Step-by-step explanation:

Licensing can be defined as a business arrangement in which a firm authorizes another firm by issuing a license to temporarily access its intellectual property rights in exchange for a "royalty" .

A firm gives right to another firm to produce it product for a fee.

The firm that permit another firm to use its intellectual property right is called the LICENSOR.

The firm who receives the licence is called the LICENSEE.

Jespher, Inc. is the LICENSOR

Hertonz is the LICENSEE

Jespher inc. issued a license in exchange for royalty fee to Hertonz to manufacture and distribute one or of its product in a foreign country.