Question

Global Enterprise Corporation, a U.S. firm, wishes to participate, but limit its involvement, in Middle Eastern markets. Global Enterprise empowers Alem, Ltd., a United Arab Emirates firm, to enter into contracts in certain countries on Global Enterprises behalf. This is

Answer 1

Answer: An agency relationship

Step-by-step explanation:

An agency relationship is defined as

• A relationship where a person known as a principal gives legal permissions to act on his or her behalf.
• It is a kind of fiduciary relationship.
• Here, the agent is a subject in the command of the principal and has to follow his or her instructions.

Here , agent = Global Enterprise empowers Alem, Ltd.

principal = Global Enterprises

Hence, the correct answer is "an agency relationship".