Granting a Foreign Company the Right to Manufacture Your Product

question 185

Multiple Choice

Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called

• A) a joint venture.
• B) a foreign subsidiary.
• C) licensing.
• D) outsourcing.

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Definitions:

Informal Rule Making

A process by which regulatory agencies create and issue rules through a less formal process than formal rulemaking, often involving public notice and comment.

Formal Rule Making

A process by which federal agencies create new regulations, involving publication of a proposed rule, a period for public comment, and the issuance of a final rule.

Congressional Review

A process by which Congress can nullify new federal regulations by passing a joint resolution of disapproval.

Captured Agency

A regulatory agency that, instead of serving the public interest, acts in favor of the industries it is supposed to regulate.