Asked by Vivek Patel on May 17, 2024
Verified
When a firm pools its resources with that of a local firm to enter a new market, they create a(n)
A) franchise.
B) export promotion.
C) joint venture.
D) direct investment.
E) strategic alliance.
Joint Venture
A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
New Market
Refers to an undiscovered or underexploited segment in the marketplace that a company can target to expand its customer base.
- Recognize and assess various international market entry approaches in terms of risk and governance.
Verified Answer
MA
Melissa AlvarezMay 22, 2024
Final Answer :
C
Explanation :
When a firm pools its resources with that of a local firm to enter a new market, they create a joint venture. This is a partnership between two or more companies that work together to achieve a specific goal, such as entering a new market or developing a new product. Both companies share the risks and rewards of the venture, with each contributing resources such as capital, expertise, and technology.
Learning Objectives
- Recognize and assess various international market entry approaches in terms of risk and governance.