Which of the following market entry strategies involves an agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for royalties? A. Joint venture B. Direct investment C. Franchise agreement D. Exporting E. Licensing agreement

E. Licensing agreement

Explanation:

A licensing is a business contract between two parties the licensor (the seller of the license) and the licensee (the buyer). In this type of agreement, a licensor allows the licensee the right to produce and sell goods, use a brand name or trademark owned by the licensor. The licensee pays royalties to the owner in exchange for these agreement. A licencing agreement usually limits the capacity of the lincensor in that it state clearly the capacity to which the agreement extends