The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game-design firms with technical specifications for how Nintendo consoles function. The game-design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example? Group of answer choices licensing franchising joint venture exporting

Licensing

Explanation:

Licensing can be defined as a business agreement in which a company gives permission to another company to produce it product by issuing a license in exchange for a fee called royalty.

The license is the legal agreement between the two firms.

The firm that issues the license to another firm is called the LICENSOR

The firm that receives the license is called the LICENSEE.

Nintendo company is the licensor who gives permission/license to the game-design firms to manufacture it product.

The game-design firms is the licensee who receives the license/permission to produce another firm's product.

The game-design firms pay royalty to Nintendo company for giving it a license.

Well it all depends. Sometimes Nintendo itself make their own games.

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