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CRL, a European plastics manufacturer, is considering forming an alliance with a U.S. military goods manufacturer to develop a new type of polymer that can be used for international industrial and military applications. Such a partnership represents what type of direct investment?

a.
Wholly owned affiliate
b.
Outsourcing
c.
Joint Venture
d.
Greenfield venture
e.
Franchising

1 Answer

3 votes

Final answer:

The partnership between CRL and a U.S. military goods manufacturer to develop a new type of polymer represents a joint venture, which is a type of direct investment where partner companies share ownership and control to achieve a common goal.

Step-by-step explanation:

The partnership between CRL, a European plastics manufacturer, and a U.S. military goods manufacturer to develop a new type of polymer for international industrial and military applications represents a joint venture. A joint venture is a business arrangement in which two or more companies agree to work together on a specific project or goal, while maintaining their separate legal and economic identities.

In this case, CRL and the U.S. military goods manufacturer are collaborating to develop a new type of polymer, combining their expertise and resources to achieve a common objective. The partnership allows both companies to benefit from each other's strengths and knowledge in order to create a product that can be used in various international applications.

A joint venture is a type of direct investment where the partner companies share ownership, control, and profits, while taking on shared risks and responsibilities.

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