question_answer 7)

Which one of the following modes of entry brings the firm closer to international markets? (a) Licensing (b) Franchising (c) Contract manufacturing (d) Joint venture

Answer:

(d) In a joint venture, both the foreign and local entrepreneurs jointly form a new enterprise, the foreign business firm benefits from a local partner's knowledge of the host countries regarding the competitive conditions, culture, language, political systems and business systems, thus bringing the firm closer to international markets.