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.

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Definitions:

Racism

A mindset of bias, differential treatment, or enmity against persons of another race, rooted in the assumption that one's race is superior.

Skin Color

The pigmentation of an individual's skin, which can vary widely among humans and is often used as a basis for social or racial classification.

Discrimination

Unfair treatment or prejudice against individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Symbolic Ethnicity

A nostalgic allegiance to the culture of the immigrant generation, or that of the old country, that is not usually incorporated into everyday behavior.