When operating as a(n)________,the export management corporation purchases products from the domestic firm,takes title,and assumes the trading risk.
A)agent
B)distributor
C)sogoshosha
D)licensor
E)franchisor

Question

Quizplus · Accepted Answer

As a distributor, the export management corporation purchases products from the domestic firm, takes title, and assumes the trading risk. This is different from an agent who acts as an intermediary between the domestic firm and foreign buyers but does not take title or assume the trading risk. Sogoshosha is a term used in Japan for trading companies that are similar to export management corporations. Licensor and franchisor both refer to companies that grant the rights to their intellectual property or business model to foreign firms but do not directly purchase or sell products.

When Operating as A(n)________,the Export Management Corporation Purchases Products from the Domestic