What Is The Concept of Licensing?



Licensing:- Under this method Manufacture enters into an agreement with the license in the foreign country, which gives the license a right to use the manufacturing process, patent or trade mark, technical information or some other service. The manufacturer in return gets a fee or royalty.


It is one of the quickest ways to enter in a foreign market. Advantages:-


  1. Quickest Way


  1. Little expenses and avoids all distribution cost.


  1. Many a times it is the only way to enter a foreign market where govts are hostile.


However, there are certain disadvantages also as it may not be the best way of the maximizing overseas opportunities in long run. The royalty or fee is less than the profit earned by license.



Like it? Share with your friends!

BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

One Comment

Facebook comments:

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
The Classic Internet Listicles
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Upload your own images to make custom memes
Youtube and Vimeo Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format