Question

LyTV, a large U.S. based broadcast network, receives royalty payments from TipTV, a small Ukrainian broadcast network, for using its channels and television programs. TipTV hopes to improve the viewership of its network by making use of MTV's popularity. This form of agreement is an example of _____. Group of answer choices direct foreign investment exporting licensing protectionism

Answer 1

Answer:

Licensing

Explanation:

Licensing is a business arrangement in which an company gives permission or right to another company to produce its product by issuing a license for an exchange for a fee called "royalty".

The firm who permit and issues the licence to another firm is called LICENSOR.

The firm who receives the license is called the LICENSEE.

LyTV is the LICENSOR.

TipTV is the LICENSEE.

TipTV will pay a royalty to LyTV for permitting it to use its channels.

LyTV is giving permission to TipTV to use its channels and television programs in exchange for a royalty.