Pepsi Cola Entered into a Long-Term Contract with a South

question 86

Multiple Choice

Pepsi Cola entered into a long-term contract with a South African beverage company. The contract calls for the South African firm to produce and market Pepsi Cola in South Africa. Pepsi will receive royalties on each case of beverage sold. This is an example of:

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

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