PepsiCo Entered into a Long-Term Contract with a South African

Multiple Choice

PepsiCo entered into a long-term contract with a South African beverage company. The contract calls for the South African firm to produce and market Pepsi products in the country. PepsiCo will receive royalties on each case of sodas sold. This is an example of

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