A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country is called a__________ .
A) franchising agreement
B) brokering agreement
C) joint venture
D) foreign subsidiary

Question

Quizplus · Accepted Answer

A joint venture is an arrangement in which two or more parties, often from different countries, agree to share the cost and risk of developing new products or building production facilities in a foreign country. Franchising involves the licensing of trademarked products and methods of doing business, brokering is a type of intermediary service, and a foreign subsidiary is a company that is owned and controlled by a parent company from another country.

A Domestic Firm and a Foreign Firm Sharing the Cost