_____ are situations in which the domestic firm assumes an equity position (partial ownership)in a foreign firm to manufacture and/or market the domestic company's goods.
A) Direct investments
B) Joint ventures
C) Buying-for-export agreements
D) Demographic groupings
E) Franchise relationships

Question

Quizplus · Accepted Answer

Joint ventures are situations in which the domestic firm assumes an equity position (partial ownership) in a foreign firm to manufacture and/or market the domestic company's goods. Direct investments involve the establishment of a wholly-owned subsidiary, while buying-for-export agreements involve purchasing goods from a foreign firm for export. Demographic groupings are not related to foreign investments, and franchise relationships involve granting a license to use the firm's trademarks and business processes, rather than an equity ownership position.

_____ Are Situations in Which the Domestic Firm Assumes an Equity