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Which term refers to a market entry strategy involving two or more firms creating a new​ entity, allowing the partners to pool their resources for common​ goals? A. Direct investment B. Joint venture C. Licensing agreement D. Exporting E. Franchise agreement

User Murad
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Answer: B. Joint venture.

Step-by-step explanation:

Joint venture is a type of business in which two or more persons or organizations under certain agreements pools resources together to start a business, or project. Such business is characterized by shared returns, governance, risks, and ownership.

A good example is between BMW and Toyota in which they operate a joint venture in carrying out research on vehicle electrification, hydrogen fuel cells, and ultra lightweight materials for car production.

Characteristics of Joint venture includes:

•It creates synergy between all parties involved.

•Risk and rewards are shared between all involved parties.

•There are no separate laws that guides them.

User Wanderer
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