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When an organization has been doing business internationally for a while and has gained experience in international markets, managers may decide to make more of a direct foreign investment. One example of this method of investment was when Honda Motor and General Electric teamed up to produce a new jet engine. The method of investment being referred to is a _________.

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Answer:

This allainces of two company giants represents the JOINT VENTURE. In a joint venture two or more companies pool their resources to establish a different line of products to enter in a different industry. By doing so, the company is able to increase the success chances because of greater number of resources available and also by shifting part of the risks to the other company.

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