Which Is NOT True of Joint Ventures

question 89

Multiple Choice

Which is NOT true of joint ventures?

• A)They are jointly owned by two or more parent companies.
• B)They share risks with local partners.
• C) They gain access to the local partner's knowledge about the host country.
• D) They are politically less acceptable than wholly owned subsidiaries.

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Definitions:

Average Cost Price

The mean cost per unit of production, calculated by dividing total costs by total output.

Price

The amount of money required to purchase a good or service, reflecting its value in the marketplace.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit from the market.