With which of the following does a domestic firm assume an equity position (partial ownership) in a foreign firm to manufacture and/or market the domestic company's goods?
A)direct investment
B)a joint venture
C)a buying-for-export agreement
D)a contractual agreement

Question

Quizplus · Accepted Answer

A joint venture involves entering into a partnership with a foreign firm and assuming an equity position in the company to manufacture and/or market the domestic company's goods. Direct investment may also involve an equity position, but it does not necessarily have to involve manufacturing or marketing the domestic company's goods. A buying-for-export agreement and a contractual agreement do not involve an equity position in a foreign firm.

With Which of the Following Does a Domestic Firm Assume