Risk-sharing is a feature of which of the following modes of entry?

Wholly owned subsidiaries

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Joint ventures

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Export and import

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None of these

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Solution

The correct option is B
Joint ventures

In joint ventures, since two firms are jointly investing, there is risk-sharing.

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Similar questions

Which one of the following modes of entry permits greatest degree of control over overseas operations?

(a) Licensing/franchising

(b) Wholly owned subsidiary

(d) Joint venture

Which of the following statement(s) is/are true about Wholly-owned subsidiaries?

1. There is no risk-sharing in the case of wholly owned subsidiaries.

In what ways is exporting a better way of entering into international markets than setting up wholly owned subsidiaries abroad?

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