Allen Lee,a Chinese Immigrant,would Like to Start a Wholesale Furniture

question 122

Multiple Choice

Allen Lee,a Chinese immigrant,would like to start a wholesale furniture business in the United States.He has contacts in the furniture production business in China and feels he can leverage these contacts to purchase inexpensive,high-quality furniture to sell in his stores in the United States.He calls one of his contacts and after extensive negotiation,makes a deal: he will buy the Chinese furniture to sell wholesale in the United States to retail furniture businesses.What is the business relationship between Allen and his Chinese contact?

• A) Allen is the licensee and the contact is the licensor.
• B) Allen is an importer and the contact is an exporter.
• C) Allen and his contact have a joint venture.
• D) Allen and his contact have a strategic alliance.

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