Which of the following is NOT an advantage to a joint venture?
A) There is possible loss of opportunity to enter the foreign market with FDI later.
B) The local partner understands the customs and mores of the foreign market.
C) The local partner can provide competent management at many levels.
D) It may be a realistic alternative when 100% foreign ownership is not allowed.

Question

Quizplus · Accepted Answer

The possible loss of opportunity to enter the foreign market with FDI later is a disadvantage of a joint venture, not an advantage. The other options are advantages of a joint venture.

Which of the Following Is NOT an Advantage to a Joint