One Advantage of Joint Ventures Is That

question 105

Multiple Choice

One advantage of joint ventures is that

• A) the foreign firm benefits from a local partner's knowledge of the host country.
• B) the foreign firm can protect its technology from being appropriated by its local partner.
• C) there is less cause for friction and conflict between the foreign and local partners.
• D) it gives a firm tight control over subsidiaries, which enables it to realize experience curve or location economies.
• E) the foreign firm does not have to bear any development costs and risks associated with opening a foreign market.

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Definitions:

Orientation Programs

Structured initiatives designed to help new employees acclimate to their roles and the company culture, policies, and expectations.

Training Role

The responsibilities involved in designing, implementing, and evaluating training programs to improve employee skills and knowledge.

Competencies

Set of skills, knowledge, abilities, and attributes that are required for success in a particular job or professional role.

Competitive Advantage

Describes a company's ability to perform in one or more ways that competitors cannot or will not match, thus creating more value for its customers.