The Transfer of Technology Rights in a Product to Allow

question 26

Multiple Choice

The transfer of technology rights in a product to allow another firm in a foreign country to produce a product in return for royalties or other specified payments is called:

• A) exporting.
• B) licensing.
• C) agency representation.
• D) subsidiary sales.

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Definitions:

Marginal Propensity

The ratio of the change in an economic variable, such as consumption or saving, to the change in another, typically income.

Disposable Income

The net financial position of households for spending and saving, after accounting for income taxes.

Consumption

Consumption encompasses the acquisition and use of goods and services by households to satisfy their needs and wants.

Induced Consumption

Consumer spending that is influenced by changes in income, differentiating from autonomous consumption which does not vary with income.