Question

Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations. These alternatives give ample choices for the firm to match financial resources, envisioned outcomes, and comfortable risks.
Which of the following descriptions of global marketing alternatives is(are)accurate?

a. An exporter markets domestically produced merchandise to customers in other countries.
b. In a joint venture, the company shares risks, costs, and management with partners.
c. To create an overseas division, a company buys an existing firm in a foreign country.
d. In an acquisition, a company sets up an independent facility outside its home country.

Answer 1

Answer:

The answer is:

B) In a joint venture, the company shares risks, costs, and management with partners.

Explanation:

Some of the advantages of a joint venture are:

1. You can increase your profit at a low cost
2. Joint ventures are flexible enterprises
3. If you affiliate with a well known brand you can get immediate recognition
4. Shared costs, expenses, benefits, risk and management
5. You get to share the know how of your affiliate company