Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company are products that feature the company's name or logo. Branded merchandise is available in over 150 countries through agreements known as _____, in which, for a fee, Caterpillar allows other firms to use its name or logo on products such as hats, boots, apparel, and scale model replicas of its equipment. g

Licensing is another great source of income for big companies. Usually, it involves a legally binding agreement in which the bigger company (Licensor) grants the smaller company (Licensee) the right to use the licensor’s company's name or logo for an agreed fee.

Thus, Caterpillar could be said to have licensing agreements in over 150 countries.

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