The president of XYZ Manufacturing Company of Buffalo, New York, comes to you with a license offer from a company in Osaka. In return for sharing the company’s patents and know-how, the Japanese...

The president of XYZ Manufacturing Company of Buffalo, New York, comes to you with a license offer from a company in Osaka. In return for sharing the company’s patents and know-how, the Japanese company will pay a license fee of 5percent of the ex-factory price of all products sold based on the U.S. company’s license. The president wants your advice what would you tell him?

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