In a joint venture where the local firm has the right to buy the MNC's interest in the joint venture,the MNC is said to be:

Question

Quizplus · Accepted Answer

A short position in finance means the sale of a borrowed security, commodity, or currency with the expectation that the asset will fall in value. In the context of the given question, an MNC that is vulnerable to being bought out by its local partner is comparable to a borrower who will have to return the shares they acquired to the original owner. As a result, such a firm is said to be in a short position.

In a Joint Venture Where the Local Firm Has the Right