________ ventures occur when a company joins forces with foreign investors to create a local business of its own.

Question

Quizplus · Accepted Answer

Joint ownership is the venture in which a company partners with foreign investors to create a local business together. This means that both parties have a say in the management and ownership of the business. Licensing involves a company giving permission to a foreign partner to use its intellectual property in exchange for royalty payments. Contract manufacturing refers to a company hiring a local manufacturer to produce its goods. Franchising involves a company granting a foreign partner the right to use its business model, brand, and support in exchange for fees and royalties. Indirect exporting involves a company selling its products to an intermediary in the foreign market who then sells to the end consumer. None of these other options involve joint ownership with foreign investors.

________ Ventures Occur When a Company Joins Forces with Foreign