QCAA Business Practice Test

The term that refers to businesses that send products from their home country to be sold in another country is exporting. In this business practice, a company produces goods in its home country and then sells those products to consumers in foreign markets. This process involves understanding international trade regulations, logistics, and market demand in the target country to successfully make sales overseas.

Exporting plays a significant role in a company’s growth strategy, as it opens up new markets and opportunities to increase revenue. Companies may choose to export to diversify their market presence, reduce dependency on a single market, capitalize on competitive advantage, or respond to consumer demand in different geographical locations.

In contrast, the other terms refer to different activities in the realm of business. Importing refers to bringing products from foreign countries into the home country, franchising involves licensing a business model and brand to others in exchange for fees or royalties, and contractual agreements are legal arrangements between parties that may pertain to various business transactions.