A licensing agreement is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm's products in a specified region.

A Licensing agreement is a legal contract between two parties, where one party grants the other party permission to use its intellectual property in exchange for a fee or royalty. It is a common form of international business where the licensor allows the licensee to make, use, and sell their patented or copyrighted products in a specific geographical area.