An American company enters the Mexican market by sharing ownership of a subsidiary firm with a Mexican company.This is an example of a(n)________.

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This is an example of a joint venture, where both American and Mexican companies share ownership of a subsidiary firm. A joint venture is a common strategy for entering foreign markets, as it allows companies to pool resources, share risks, and gain access to local knowledge and networks. Contract manufacturing, strategic alliances, export agreements, and franchises are all different types of international business arrangements but do not involve shared ownership of a subsidiary firm.

An American Company Enters the Mexican Market by Sharing Ownership