A significant reason for ________ is market entry and support of global operations.
A)direct involvement
B)indirect involvement
C)equity participation
D)turnkey operations
E)contract manufacturing

Question

Quizplus · Accepted Answer

Equity participation, in which a company invests in the ownership of a foreign company or joint venture, is often used to facilitate market entry and support global operations. This allows for a more direct involvement in the foreign market and sharing of resources, knowledge, and risk with the local partner. Direct involvement (A) and turnkey operations (D) may also be used for market entry, but they do not necessarily involve ongoing support of global operations. Indirect involvement (B) and contract manufacturing (E) do not involve ownership or control of foreign operations, and may not provide the same level of support for global operations.

A Significant Reason for ________ Is Market Entry and Support