Scenario: Sports Stuff, Inc.Herb Graham is vice president of Sports Stuff, a business that develops, manufactures, and markets sports memorabilia. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports popular in Europe, the company will achieve success there.Herb knows that much of the success his company enjoys is due to the patents and copyrights that protect the company's products. Herb has discovered that __________________ is an entry mode in which a company that owns intangible property grants another firm the right to use that property for a specified period of time.
a. strategic allianceb. franchisec. licensingd. management contract

Licensing is a contractual entry mode that allows a foreign company to operate via home company’s strategies, technology, patents and trademarks to produce the home company’s product under specific terms and for specific period of time. Licensing also allows a company physical operations in a new region without having to construct manufacture facilities from the scratch.