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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?


Definitions:

Project Risk

The potential for losses or less than expected returns from a particular project due to factors such as cost overruns, delays, or changing conditions.

Pure Play Approach

A business strategy focusing solely on a single product or service to gain competitive advantage.

WACC

The Weighted Average Cost of Capital is a method used to compute a company's cost of capital, where each type of capital is assigned a weight proportional to its importance.

Performance Measure

Metrics or standards used to evaluate the effectiveness, efficiency, and productivity of an individual, organization, or process.

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