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?

Question

Quizplus · Accepted Answer

Allen is importing furniture from his Chinese contact, who is exporting it to him. They are engaged in an import-export business relationship. Therefore, option B is the correct answer. Option A is incorrect because a licensee pays a fee to use a licensor's intellectual property, but there is no mention of such an arrangement here. Option C is incorrect because a joint venture involves two or more parties pooling resources and expertise to create a new entity, which is not the case here. Option D is incorrect because a strategic alliance implies a long-term partnership between two or more organizations to achieve strategic goals, but no such arrangement is mentioned in the scenario.

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