Ozark Bikes,Inc.has information that its bicycles will sell in Vietnam.In order to sell its products in Vietnam,the Vietnamese government requires Ozark Bikes to enter into a partnership, (also known as a joint venture)with a domestic firm.Both firms will assume costs and risk in the venture.
A joint venture is a partnership in which companies (often from two different countries)join to undertake a major project.Governments sometimes require foreign firms to enter into joint ventures as a condition of doing business in their countries.

Question

Quizplus · Accepted Answer

This statement correctly defines what a joint venture is and explains that sometimes governments require foreign firms to enter into joint ventures in order to do business in their countries.