China does not allow foreign car manufacturers to sell vehicles independently in its country but instead requires them to partner with a Chinese company.This type of partnership is known as a
A)franchise agreement.
B)countertrade.
C)joint venture.
D)maquiladora.
E)greenfield venture.

Question

Quizplus · Accepted Answer

A U.S.firm may form a joint venture, also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country.Sometimes a joint venture is the only way an American company can have a presence in a certain country, whose laws may forbid foreigners from ownership.Indeed, in China, this is the only way foreign cars may be sold in that country.

China Does Not Allow Foreign Car Manufacturers to Sell Vehicles