Question

In the context of foreign market entry, _____ are long-term, nonequity associations between a company and another in a foreign market?

1) consortia
2) exporting arrangements
3) direct foreign investments
4) contractual agreements
5) joint ventures

Answer 1

Joint ventures are long-term, nonequity associations between a company and another in a foreign market. The correct answer is option 5).

Step-by-step explanation:

In the context of foreign market entry, joint ventures are long-term, nonequity associations between a company and another in a foreign market. Joint ventures involve a collaboration between two or more companies to enter a foreign market and share resources, risks, and profits.

Unlike other foreign market entry strategies like direct foreign investments, joint ventures allow companies to establish a presence in a foreign market without fully acquiring or merging with another company. For example, a U.S. automaker may form a joint venture with a local automotive manufacturer.

China to tap into the Chinese market. This allows the U.S. company to benefit from the local partner's knowledge, distribution network, and government relationships.