Identify a benefit of using joint ventures to enter a foreign market.
A) It entails minimum risk.
B) It provides access to an established distribution network in the host country.
C) It yields the highest returns.
D) It retains full control of its investment in the host country.
E) It is the best strategy for countries with psychic proximity.

Question

Quizplus · Accepted Answer

Joint ventures provide access to an established distribution network in the host country, which can be a significant benefit for entering a foreign market. By partnering with a local company, the foreign firm can leverage the partner's knowledge of the market and established relationships with local suppliers, distributors, and customers. This can help the foreign firm overcome barriers to entry and achieve faster and more efficient market penetration. A joint venture may not entail minimum risk, may not yield the highest returns, and may involve shared control of the investment in the host country. Joint ventures may not always be the best strategy for countries with psychic proximity, depending on the specific context and circumstances.

Identify a Benefit of Using Joint Ventures to Enter a Foreign