Skye Pye Corporation,a U.S. firm,wishes to participate,but limit its involvement,in Middle Eastern markets. Skye Pye empowers Alem,Ltd.,a United Arab Emirates firm,to enter into contracts in certain countries on Skye Pye's behalf. This is

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This is an agency relationship because Skye Pye is authorizing Alem, Ltd. to act on its behalf in certain countries. A distribution agreement would involve Skye Pye selling its products to Alem, Ltd. for resale, indirect exporting involves selling products to intermediaries who then sell them in foreign markets, and licensing involves granting permission for a foreign company to use Skye Pye's intellectual property.