Which of the Following Is an Advantage of Joint Ventures

question 78

Multiple Choice

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

• A) A foreign firm shares the costs and risks of development with its local partner.
• B) A foreign firm can easily maintain control over how its technological know-how is used by a local partner.
• C) There is less cause for friction and conflict between partners involved in a joint venture.
• D) Joint ventures are ideal to maintain tight control over subsidiaries.
• E) Joint ventures benefit firms lacking the capital to expand operations overseas.