All of the Following Are Potential Advantages of an International

question 8

Multiple Choice

All of the following are potential advantages of an international joint venture EXCEPT

• A) sharing research and development costs among corporations.
• B) forestalling protectionism against imports.
• C) establishing work rules promoting higher labor productivity.
• D) operating at diseconomy-of-scale output levels.

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Definitions:

Consideration

In contract law, it refers to something of value exchanged between parties as the basis for a contract.

Bargained-for Exchange

Bargained-for exchange is a legal concept where parties agree to provide something of value to each other, forming the basis of a contract.

Illusory Promise

A statement that appears to be a binding commitment but allows for so much discretion that it does not legally bind the party making it.

Promisor

The party in a contract who makes a promise to perform or provide a benefit to the promisee.