Arthur's Auto Parts Inc. wants to enter the Russian market. Russian law prevents foreign entities from owning a majority position in a company there. The best method of entry for Arthur's is most likely ________.

Question

Quizplus · Accepted Answer

Joint venture allows Arthur's Auto Parts Inc. to enter the Russian market while complying with the local law that foreign companies cannot own a majority position in a company. By partnering with a local firm in a joint venture, Arthur's can bring its expertise and technology to the market while sharing ownership and control with a local partner. This can also help mitigate cultural and regulatory differences that can often be a barrier to entry in foreign markets.