Laelle Corp.,a popular cosmetic brand in France,has decided to expand its business to Australia.The company enters into an agreement with a local firm in Australia by which the two companies share 50 percent equity.This mode of entry is an example of _____.

Question

Quizplus · Accepted Answer

A joint venture is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, such as entering a new market, and share ownership, risks, and profits. In this case, Laelle Corp. and the local firm in Australia sharing 50 percent equity is an example of a joint venture.