Question

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) licensing; (3) __________; and (4) direct investment.

Answer 1

Answer:

(3) Joint venture

Explanation:

Once a company has decided to enter the global marketplace, it must select a means of market entry. Four general options exist: (1) exporting; (2) licensing; (3) joint venture; and (4) direct investment.

Joint venture refers to an association that occurs between two companies that are usually located in different countries, in which they combine marketing strategies in order to increase their revenues and enter the global marketplace.

An example is the joint venture of General Motors–Suzuki. This "alliance" was extremely beneficial for both companies, as it allowed Suzuki to access both American and European markets, while General Motors employees learned important Japanese manufacturing methods.