Which of the following is true of an international joint venture?
a. It involves active ownership of a foreign company or of overseas manufacturing or marketing facilities.
b. A domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.
c. It is a laborious, slow, and an expensive way to go global and gain expertise.
d. Joint ventures tend to be relatively low risk and immune to failure.
Answer: b. A domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.