Question

Pepsi provides Heineken with its formula or agrees to supply the cola syrup and Heineken adds carbonated water, packages it in appropriate containers, and sells it in the Netherlands. Pepsi cannot enter into a similar agreement with another firm to sell Pepsi in the Netherlands, and Heineken cannot alter the product, nor can it begin duplicating other Pepsi products (such as Lays Potato Chips) without a separate agreement. This is an example of:

A) Franchising.

B) Exporting.

C) Licensing.

D) Contract manufacturing.

E) Management contracts.

Answer

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