Which of the Following Is an Advantage of Joint Ventures

question 137

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 that which enable 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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Definitions:

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