Answer:
The question is missing the below options:
a.Licensing
b.Export/import merchant agreement
c.Export/import agent agreement
d.Multinational agreement
e.Joint venture
The correct option is Licencing, option A
Explanation:
Licensing is a business arrangement where the licensee leases the right to produce or sell the licensor's product or service in return for an amount payable to the licensor given as a percentage of sales unit price known as royalty.
A multinational agreement where a parent company sets up a subsidiary in another country could also feature payment of royalty in addition to retained earnings , management fees being repatriated back to the home country of the parent company.
Joint venture requires that profits and losses be shared between joint venturers in an agreed predetermined ratio.
