A Disadvantage of Entering Global Competition Through a Joint Venture

question 111

Multiple Choice

A disadvantage of entering global competition through a joint venture is that

• A) It often aggravates political issues and incurs protectionist measures.
• B) The partner's ideas about local tastes and preferences may interfere with standardized operations.
• C) Conflict over control within joint ventures causes many of them to fail.
• D) It is the most expensive and risky option for entering a global market.
• E) There is seldom a formal agreement in place covering the joint venture.

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Definitions:

Immediate Gratification

The desire or tendency to obtain pleasure or fulfillment without delay or deferment.

Socio-Cultural Conditions

The social and cultural factors that influence an individual's behavior, beliefs, and interactions within a society.

Business Ethics

The study of proper business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities.

Offshoring

The practice of relocating business processes or services to a different country, typically to leverage cost advantages.