A fully global organization might set up a ________ with a foreign company to create a new,independent company that produces a specific product.
A)foreign subsidiary
B)strategic alliance
C)licensing agreement
D)joint venture

Question

Quizplus · Accepted Answer

A joint venture is a business agreement in which two or more parties agree to pool their resources to achieve a specific goal. In this case, a fully global organization would set up a joint venture with a foreign company to create a new, independent company that produces a specific product. This allows both parties to share the risks, costs, and rewards of the venture. A foreign subsidiary is a company that is owned and controlled by a parent company located in a different country. A strategic alliance is a partnership between two or more parties to pursue a specific business opportunity or to achieve a specific goal. A licensing agreement is a legal contract in which one party grants another party the right to use its intellectual property for a specific purpose.

A Fully Global Organization Might Set Up a ________ with a Foreign