Earth-Rite Organic Foods (Scenario)

question 57

Multiple Choice

Earth-Rite Organic Foods (Scenario)
Earth-Rite Organic Foods Inc. is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $10 billion and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic produce. Earth-Rite is considering a collaborative venture with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Which of the following benefits would Earth-Rite most likely accrue if it entered into a joint venture with the Brazilian grocery store chain?

• A) Earth Rite would experience high employee turnover in the home country.
• B) Earth Rite would be able to eliminate competition in the foreign markets.
• C) Earth Rite would be able to completely eliminate the risk of proprietary knowledge infringement abroad.
• D) Earth Rite would have access to the foreign partners' know-how.

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