Final answer:
Domestic consolidation is not an arrangement for handling exports; it relates to internal logistics, unlike direct exporting, indirect exporting, and licensing which all pertain to international sales.
Step-by-step explanation:
Possible arrangements for handling exports from the manufacturer's home country include Direct exporting, Indirect exporting, and Licensing, but not Domestic consolidation. Domestic consolidation is a term more relevant to internal logistics within the manufacturer's own country rather than the international export process. In contrast, direct exporting involves a manufacturer selling directly to a buyer in another country, while indirect exporting typically involves a manufacturer utilizing intermediaries to sell products overseas. Licensing is an arrangement where a manufacturer allows a foreign company to produce and sell products under its brand name.
Explaining further, international trade enables even small economies to benefit from economies of scale by allowing them to specialize in the production of goods where they have a comparative advantage and then trade for other goods. This not only promotes competition and provides consumers with a wider variety of products but also allows manufacturers to produce at larger, more cost-effective volumes.