Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

Licensing

A trade agreement in which one company—the licensor—allows another company—the licensee—to use its company name, products, patents, brands, trade marks, raw materials, and/or production processes in exchange for a fee or royalty.

International Marketplace

A global economic environment that enables companies to buy and sell goods and services across national borders, subject to regulations and policies of the involved countries.