Oceanside Tools, Inc. of Newport, Rhode Island has agreed to work with a Thai company to produce and sell chemicals in Thailand. The U.S. firm will provide technical and marketing know-how, while its Thai partner will provide knowledge of Thai markets and political connections. The partners will share the costs and profits 50/50. This type of international involvement is called:
A) direct investment.
B) management contracting.
C) licensing.
D) multinational marketing.
E) joint venturing.

Question

Quizplus · Accepted Answer

This situation is an example of a joint venture, which involves two or more companies partnering together to pursue a specific business opportunity, sharing both the costs and the profits.