Scenario: Sports Stuff,Inc.
Herb Graham is vice president of Sports Stuff,a business that develops,manufactures,and markets sports memorabilia.The company is looking to expand its operations into the European market.Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe,the company will achieve success there.
-Herb's boss is concerned with the firm's lack of experience in foreign markets.To minimize this problem,Herb most likely recommends that the firm create a ________ with a local partner.
A)joint venture
B)turnkey project
C)wholly owned subsidiary
D)franchise

Question

Quizplus · Accepted Answer

A joint venture would allow Sports Stuff to partner with a local company in Europe, which would minimize the company's lack of experience in foreign markets while also allowing for the development of products reflecting sports that are popular in Europe. This would enable Sports Stuff to benefit from the local partner's knowledge of the market and consumer preferences. The other options such as turnkey project, wholly owned subsidiary, and franchise may not provide the same level of support and experience that a joint venture would offer.

Scenario: Sports Stuff,Inc. Herb Graham Is Vice President of Sports Stuff,a Business That