A Disadvantage of a Joint Venture Arrangement When Entering a New

question 103

Multiple Choice

A disadvantage of a joint venture arrangement when entering a new global market is that

• A) intermediaries have the potential to harm the brand.
• B) the firm entering the foreign market must pay royalties to the other firm.
• C) one of the companies forgoes control over its product.
• D) the two companies may disagree about policies.
• E) this method is likely to provide the fewest subsidies from the host country's government.

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Definitions:

Ctenophores

Phylum of marine animals (comb jellies) whose bodies consist of two layers of cells enclosing a gelatinous mass. The outer surface is covered with comblike rows of cilia, by which the animal moves.

Nematocysts

Specialized cells in cnidarians (like jellyfish) that shoot out a toxic barb in self-defense or to capture prey.

Biradially Symmetrical

A type of symmetry in organisms where the body can be divided into mirror-image halves in two different planes.

Cnidarian

A group of aquatic invertebrates known for their stinging cells, including jellyfish, corals, and sea anemones.