Question

question 6 (1 point) listen in the context of foreign direct investment, which of the following statements is true about joint ventures? a) they offer management guidance to and financing for franchisees. b) they are the costliest form of direct investment. c) they involve the merger of companies. d) they are a controversial means of entering foreign markets.

Explanation:

• Option a: Franchise systems offer management/financing to franchisees, not joint ventures. Eliminate a.
• Option b: Wholly - owned subsidiaries are often the costliest direct investment, not joint ventures. Eliminate b.
• Option c: Mergers combine companies, joint ventures are partnerships, not mergers. Eliminate c.
• Option d: Joint ventures can be controversial (e.g., control, cultural issues) in foreign markets. This is correct.

Answer:

d) They are a controversial means of entering foreign markets.