Which of the Following Is an Advantage of Establishing a Joint

question 31

Multiple Choice

Which of the following is an advantage of establishing a joint venture?

• A) Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference.
• B) Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies.
• C) When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner.
• D) The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc.