A Canadian software company that specializes in developing computer games enters into an agreement with a Japanese software company. Under this agreement, the Japanese company has the right to manufacture and sell the Canadian company's games in Japan. This agreement is an example of .

A. Foreign licensing agreement

Explanation:

The agreement is an example of foreign licensing agreement.

Foreign licensing agreement: This refers to the opportunity given by a foreign company to allow another company in another country to sell, market, or produce it's property in exchange for royalties. This will allow the company given permission to produce other firms product to grow physically and financially.

Foreign licensing agreement involves the issuance of license to a foreign firm to produce your product. The licensee and the licensor is involved in the agreement.

Licensee refers to the firm who gives licence to a foreign firm in exchange for royalties.

Licensor refers to the foreign firm who receives the licence.

The Canadian software company is the licensor.

The Japanese software company is the licencee.

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answer; someone must cover the cost associated with the provision of scarce goods in both sectors;