Question

Max is looking to expand his American custom tie manufacturing business in Dallas, Texas, overseas. He has found an organization in Brussels, Belgium, that is willing to partner with him and split the capital requirements. Max and his Belgian partners will be creating a new company that manufactures custom European-style ties. What method of global expansion is Max utilizing?

Answer 1

Answer:

joint venture

Explanation:

The method that max is using for global expansion is known as a joint venture. This is the case in this scenario since they are partnering with the Company overseas and sharing in the capital requirements as well as the accomplishments and profits. In the context of global expansion, this is done in order to make the expansion into a new geographical location by partnering with a local company in the area which has experience dealing with that economic environment.