Explain the Difference Between Joint Venture and Direct Investment Market

question 52

Essay

Explain the difference between joint venture and direct investment market entry strategies. What are the advantages and disadvantages of each approach?

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Definitions:

Certificate of Deposit

A savings certificate with a fixed maturity date, specified fixed interest rate, and can be issued in any denomination aside from minimum investment requirements.

Financial Intermediary

An institution that facilitates the channeling of funds between lenders and borrowers by intermediating between them.

Direct Transfer

A process where assets or funds are moved from one party directly to another without intermediaries.

Capital Market Security

Financial instruments like stocks and bonds that are traded in capital markets involving long-term investments.