Assuming total cost for a direct channel of 100,000 and an ...

[cookcarl]

Assuming total cost for a direct channel of 100,000 and an average gross margin on sales of 25, the sales volume needed to cover these costs would be:
 a. 2,500,000.
  b. 25,000.
  c. 75,000.
  d. 400,000.
  e. 250,000.

Question 2

Why would a firm choose to enter a market through a joint venture?

[aruss1303]

Answer to Question 1

D

Answer to Question 2

Joint ventures involve a foreign company joining with a local company. Joint ventures are a preferred international entry mode for emerging markets. In developing countries, it is typical for joint ventures to take place between an international firm and a state-owned enterprise; in this case, the company's partner is the local government. This almost assures instant access and preferential treatment within the country.