If the Coca-Cola Company allows a Mexican firm to use its name,formula,and brands in return for a royalty,then this arrangement would be known as:

A) exporting.
B) licensing.
C) direct investment.
D) contract manufacturing.
E) a joint venture.

Licensing

Licensing is the process whereby a company allows another entity to use its intellectual property, brand, or product for a specified period in exchange for fees or royalties.

Royalty

A payment made to the owner of certain property rights for the use of those rights by others, common in publishing and patenting.