A Disadvantage of a Joint Venture Arrangement When Entering a New

question 103

Multiple Choice

A disadvantage of a joint venture arrangement when entering a new global market is that

• A) intermediaries have the potential to harm the brand.
• B) the firm entering the foreign market must pay royalties to the other firm.
• C) one of the companies forgoes control over its product.
• D) the two companies may disagree about policies.
• E) this method is likely to provide the fewest subsidies from the host country's government.

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