Suppose GE initiates a joint venture with a local company in Mexico as a way of adapting to risk. Which of the following strategies is GE most likely using?

Question

Quizplus · Accepted Answer

Equity sharing involves forming a joint venture with a local company, where both parties share ownership and profits. This is a common strategy used by companies to mitigate risk when entering a new market or expanding operations in a foreign country.

Suppose GE Initiates a Joint Venture with a Local Company