If an MNC and a local firm form a joint venture,and the MNC has the right to sell its interest in the joint venture to the local partner,the MNC is said to have a:

Question

Quizplus · Accepted Answer

If the MNC has the right to sell its interest in the joint venture to the local partner, it is said to have a put option. This means that the MNC has the right to sell its shares at a predetermined price and time, providing it with an exit strategy.

If an MNC and a Local Firm Form a Joint