The British firm joining in the joint venture:
A) faces lower risk than if it were using a wholly-owned foreign affiliate.
B) enjoys greater control than is it were using the wholly-owned affiliate.
C) can anticipate a lower cost than a company that uses global outscoring.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

A joint venture typically involves sharing risks and costs with another party, which generally results in lower risk compared to operating a wholly-owned foreign affiliate where the firm bears all the risks alone.

The British Firm Joining in the Joint Venture