Which of the following is true about joint venturing?
A) Management contracting is highly risky for the domestic firm.
B) Contract manufacturing gives significant control to the domestic firm.
C) Licensing is a highly complex method for entering global markets.
D) A host country partner is necessary for selling or marketing products.
E) Companies are required to invest in the construction of foreign-based facilities.

Question

Quizplus · Accepted Answer

Joint venturing involves partnering with a host country firm to sell or market products. This allows for more localized knowledge and better distribution channels. Management contracting and contract manufacturing do not necessarily require a host country partner. Licensing can be complex, but it is not a method of joint venturing that involves a partner. Investing in the construction of foreign-based facilities is only necessary in certain joint venture arrangements.

Which of the Following Is True About Joint Venturing