Question

herman owns a highly regarded company that manufactures office chairs. he has decided to try to expand his company overseas by selling the rights to manufacture and sell his furniture using his designs and brand in exchange for a fee and royalties. what kind of international business expansion strategy is this?
(1 point)

exporting
contract manufacturing
licensing agreement
joint venture

Explanation:

A licensing agreement is a legal contract where the licensor (Herman) grants the licensee (the overseas manufacturer) the rights to use the licensor's designs and brand. In return, the licensor receives a fee and royalties. This fits the description in the problem. Exporting is simply selling goods abroad without such a rights - transfer agreement. Contract manufacturing is when a company hires another to produce its goods but may not involve brand/design rights transfer in the same way. A joint venture is a new business entity formed by two or more parties.

Answer:

licensing agreement