UPS is involved in a joint venture agreement with China's largest transportation company Sinotrans Pekair. The Chinese company uses UPS technology and expertise and UPS gets an existing national distribution network. The major disadvantage of such a joint venture is
A) its high opportunity costs.
B) the risk of giving up control of proprietary knowledge to a partner.
C) the problem of differentiating between direct and indirect shared costs.
D) the existence of high trade barriers.
Correct Answer:
Verified
Q85: The major disadvantage associated with the formation
Q86: Standardization of one or more parts of
Q87: One of the advantages of direct ownership
Q88: What is the major disadvantage associated with
Q89: The Nissan factory in Smyrna, Tennessee, is
Q91: Joint ventures are more likely to be
Q92: Otto Versand, the world's largest mail order
Q93: The primary disadvantages of direct ownership are
Q94: _ allow firms to take advantage of
Q95: Continental Airlines and Air France entered into
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents