In the Context of Entry and Growth Strategies for Global

question 89

Multiple Choice

In the context of entry and growth strategies for global marketing,which of the following is most likely an advantage of joint ventures?

• A)It aids a firm in maintaining a tight control over manufacturing and marketing.
• B)It helps a firm gain by sharing costs and risks of operating in a foreign market.
• C)It allows a firm to achieve experience-curve and location economies.
• D)It prevents a firm from taking undue advantage of a partner's distribution system.

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Definitions:

Perfectly Competitive

A market structure characterized by many sellers and buyers, homogeneous products, free entry and exit, and perfect information, leading to an optimal distribution of resources.

Conditions

Various factors or circumstances that affect the operation of a market or the outcome of an economic model.

External Economies

Benefits that arise from a firm's actions but are enjoyed by other parties or firms without compensation, typically leading to an under-provision of a good or service.

Production Costs

Expenses incurred in the process of creating a product or service, including materials, labor, and overhead.