Which of the Following Is an Advantage of Joint Ventures

question 84

Multiple Choice

Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?

• A)The foreign firm benefits from a local partner's knowledge of the host country.
• B)The foreign firm can protect its technology from being appropriated by its local partner.
• C)There is less cause for friction and conflict between the foreign and local partners.
• D)It gives a firm tight control over subsidiaries,which enables it to realize experience curve or location economies.
• E)The foreign firm does not have to bear any development costs and risks associated with opening a foreign market.

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