U.S.-based Procter & Gamble and Italian-based Fater agreed to produce and market diapers for the European market.This is an example of a joint venture.

Question

Quizplus · Accepted Answer

A joint venture is when two or more companies agree to create a new entity and share resources, risks, and profits to achieve a specific goal. In this case, Procter & Gamble and Fater are creating a joint venture to produce and market diapers for the European market, which involves sharing resources and risks to achieve the goal of penetrating a new market.

US-Based Procter & Gamble and Italian-Based Fater Agreed to Produce