Pepsi Cola Has Entered into a Long-Term Contract with a South

Multiple Choice

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 Cola will receive a royalty on each case of soda sold.This is an example of:

A) licensing.
B) foreign direct investment.
C) a joint venture.
D) a foreign subsidiary.