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5 October, 04:12

in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

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Answers (1)
  1. 5 October, 05:16
    0
    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.
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Home » Business » in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?
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