Question

megan, a jewelry maker in florida, makes international sales through her website. she ships the products from her store in florida to other countries after receiving orders. this scenario is an example of ______

• exporting
• factoring
• franchising
• foreign direct investment

Explanation:

First, let's analyze each option:

• Exporting: Exporting is the process of sending goods or services produced in one country to be sold in another country. Megan is shipping her jewelry (produced in Florida, USA) to other countries for sale, which fits the definition of exporting.
• Factoring: Factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third - party (a factor) at a discount. This has nothing to do with shipping products internationally for sale, so this option is incorrect.
• Franchising: Franchising is a business model where a franchisor (the owner of a business concept) grants a franchisee (another party) the right to use its business name, products, services, and business model in exchange for a fee. Megan is not involved in a franchising arrangement here, so this option is incorrect.
• Foreign direct investment: Foreign direct investment (FDI) is when a company or individual invests in and manages operations in a foreign country. Megan is just shipping her products from Florida to other countries, not investing in and managing operations in other countries, so this option is incorrect.

Answer:

A. exporting