Question

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

Answer 1

Answer:

Licence-sing

Explanation:

This is a business deal in which a one give  permission another company  to make its product for a specified payment. Licensing is a billion-dollar business worldwide. In this procedure, you have something that your competitors have not. The second thing is that it may mean to get a little better margin because it is unique. The third one is that 10 percent of the retailers you call on that you have never been able to sell to will finally take a look because you have different something. And after that, you can sell the rest of the line. Before handling the license you do have your own house in order. The license lets you instantly up existing production, distribution, and marketing system that other companies may decades building.