Licensing and franchising is the correct answer when it comes to permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copyrights in exchange for a fee. Let's explore this option in detail:

Licensing and Franchising:
1. Definition:
- Licensing: Licensing involves granting permission to another party in a foreign country to use your intellectual property, such as trademarks, patents, or copyrights, in exchange for a fee or royalty.
- Franchising: Franchising is a specific form of licensing where a business model and brand are replicated by the franchisor (original business) to the franchisee (new business) in another country.

2. Process:
- Licensing: The licensor (owner of intellectual property) and licensee (foreign party) enter into a licensing agreement, which outlines the terms and conditions of using the intellectual property. The licensee pays a fee or royalty to the licensor for the rights granted.
- Franchising: The franchisor grants the franchisee the rights to use its brand, business model, trademarks, and patents. In addition to the licensing agreement, a franchise agreement is signed, which covers various aspects of the business relationship, including fees, support, and control.

3. Benefits:
- Expanding Market Reach: Licensing and franchising allow businesses to enter new markets without directly establishing operations in foreign countries, thereby increasing their market reach.
- Revenue Generation: The licensor or franchisor earns revenue through licensing fees or royalties paid by the licensee or franchisee, respectively.
- Brand Expansion: Licensing and franchising help to expand brand recognition and visibility in different countries.
- Local Market Knowledge: Licensees and franchisees often have better knowledge of local markets, culture, and consumer preferences, which can lead to better market penetration.

4. Considerations:
- Legal Protection: It is crucial to protect intellectual property rights through proper registration and legal agreements to prevent unauthorized use or infringement.
- Quality Control: The licensor or franchisor must ensure that the licensee or franchisee maintains quality standards and complies with brand guidelines.
- Cultural Differences: Understanding and adapting to local cultures and customs is essential for successful licensing and franchising.

In conclusion, licensing and franchising provide a way for businesses to expand internationally by allowing foreign parties to produce and sell goods under their intellectual property. This arrangement benefits both parties and facilitates market entry into foreign countries.