Which of the Following Is NOT an Advantage to a Joint

question 5

Multiple Choice

Which of the following is NOT an advantage to a joint venture?

• A) There is possible loss of opportunity to enter the foreign market with FDI later.
• B) The local partner understands the customs and mores of the foreign market.
• C) The local partner can provide competent management at many levels.
• D) It may be a realistic alternative when 100% foreign ownership is not allowed.

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Definitions:

Bundle

A combination of goods or services that are purchased together.

Optimal Choice

The best possible selection among various alternatives, considering constraints and objectives, to maximize or minimize desired factors such as utility, profit, or costs.

Consumer

An individual or group that purchases goods and services for personal use and not for manufacture or resale.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.