Which of the Following Is a Disadvantage of Joint Ventures

question 135

Multiple Choice

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

• A) Joint ventures with local partners face a high risk of being subjected to adverse government interference.
• B) Firms engaged in joint ventures have short-term commitments in the foreign market.
• C) Joint ventures do not give a firm tight control over subsidiaries that it might need to realize experience curve or location economies.
• D) In many countries, political considerations make joint ventures impractical as an entry mode.
• E) Quality control problems arise due to lack of interest of local partners.