International Entrepreneurs (Scenario)
Jennifer and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.
-A new and exciting opportunity has appeared that enables Jennifer and James to form a joint venture with a bank in Japan.This partnership will involve less risk and commitment than ________.

Question

Quizplus · Accepted Answer

Setting up a foreign subsidiary typically involves a higher level of risk and commitment, including significant investments of time and money to establish a legal entity in the foreign country. Licensing and franchising arrangements may also involve significant commitments, particularly in terms of protecting intellectual property and maintaining quality control. Global sourcing may involve lower risk but is typically focused on procurement rather than establishing a presence in a foreign market. A joint venture allows for a shared risk and shared resources with the Japanese bank, making it a lower risk option than setting up a foreign subsidiary.

International Entrepreneurs (Scenario) Jennifer and James Have Formed an Entrepreneurial Venture to Develop