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When SEARS opened departmental stores in Mexico and Spain and found it convenient.
Contract manufacturing offers the company a chance to start faster and with lesser risk.
(e) Joint Ventures: A joint venture is a restricted or a temporary partnership between two or
more firms to undertake jointly to complete a specific venture. Here both the parties participate
in the equality and operations of the business, sharing profits or losses in the agreed ratio. This
method is useful for going global when one wants to take limited, calculated risk.
(f) Direct Investment: It refers to the through direct ownership of foreign-based manufacturing
facilities. Here, the firm exposes its large investment to risks by buying partly or full interest in a
local company or by building its own enterprise.