An MNC uses which international strategy for entering a foreign market by associating itself with a firm in the host country or a government agency in that country to combine resources and expertise needed for the development of a new product or technologies?
A) licensing
B) joint ventures
C) production sharing
D) exporting
E) acquisitions

Question

Quizplus · Accepted Answer

Joint ventures involve associating with a firm in the host country or a government agency to combine resources and expertise for a new product or technology. Licensing involves granting permission to a foreign firm to use proprietary technology or products for a fee. Production sharing involves dividing the production process among firms in different countries. Exporting involves selling products to foreign countries, and acquisitions involve purchasing a foreign firm. Therefore, joint ventures are the best choice for this scenario.

An MNC Uses Which International Strategy for Entering a Foreign