One of the advantages of _____ is that the founding companies bear only part of the costs and the risks of that business.
A) a business acquisition
B) direct foreign investment
C) direct exporting
D) a joint venture

Question

Quizplus · Accepted Answer

In a joint venture, multiple companies come together to form a new business entity and share the costs and risks associated with the venture. This means that the founding companies do not bear the full burden of the costs and risks, making it an advantageous option for international expansion. Business acquisition involves purchasing an existing company, which can be expensive and risky. Direct foreign investment involves the company fully owning and operating a subsidiary in a foreign country, which can also be expensive and risky. Direct exporting involves the company selling its products directly to customers in a foreign country, which does not involve sharing costs and risks with other companies but may involve high transportation costs and other expenses.

One of the Advantages of _____ Is That the Founding