Burger Heaven, a U.S. firm, makes a deal with a Canadian firm, Donny's Diners, that allows Donny's to use Burger Heaven's trade name in Canada in return for a fee. This is

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The described arrangement is a licensing agreement, as Burger Heaven is allowing Donny's Diners to use their trade name in return for a fee. A distribution agreement would involve the distribution of goods, while a subsidiary would involve the creation of a new company. Direct exporting would involve a company selling its goods directly to foreign customers without the use of intermediaries.