A Joint Venture Differs from Direct Investment in That Direct

question 54

Multiple Choice

A joint venture differs from direct investment in that direct investment:

• A)is formed when a domestic firm provides management consulting to a foreign firm.
• B)requires a foreign firm to maintain complete ownership of its facilities in the foreign country.
• C)is formed when a foreign firm contracts with a local firm in the host market to manufacture a product.
• D)is a low-risk method of entering a country's market without setting up operations in the country.
• E)generates returns immediately upon execution of the agreement.

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Definitions:

Distal Location

Refers to parts of the body or structures located farthest from the point of attachment or reference.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow.

False Ribs

The lower ribs (usually ribs 8-10) that are not directly attached to the sternum but are connected to the true ribs above them via cartilage.

Sternum

A long, flat bone located in the center of the chest, serving as a support for the rib cage and to protect vital organs such as the heart and lungs.