A Joint Venture Differs from Direct Investment in That Direct

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.