All of the Following Are Advantages for a Firm Entering

question 81

Multiple Choice

All of the following are advantages for a firm entering into a joint venture except

• A) the firm may be able to benefit from a partner's knowledge of the host country's competitive position, culture, language, political systems etc.
• B) the firm gains by sharing costs and risks of operating in a foreign market.
• C) the firm will have tight control over a foreign subsidiary needed to engage in coordinated global attacks against rivals.
• D) it allows firms to take advantage of a partner's distribution system, technological know-how, or marketing skills.

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Definitions:

APR

Annual Percentage Rate; a comprehensive measure of the cost of borrowing on an annual basis, including interest and other fees.

Monthly-Compounded

Monthly-Compounded refers to the process of applying interest on an investment or loan on a monthly basis, where each month's interest is added to the principal.

EAR

Effective Annual Rate, the actual return on an investment or the actual interest rate on a loan over one year, including compounding.