One advantage of joint ventures is that
A) the foreign firm benefits from a local partner's knowledge of the host country.
B) the foreign firm can protect its technology from being appropriated by its local partner.
C) there is less cause for friction and conflict between the foreign and local partners.
D) it gives a firm tight control over subsidiaries, which enables it to realize experience curve or location economies.
E) the foreign firm does not have to bear any development costs and risks associated with opening a foreign market.

Question

Quizplus · Accepted Answer

A joint venture allows a foreign firm to benefit from a local partner's knowledge of the host country's market, culture, and regulations, which can be a significant advantage.

One Advantage of Joint Ventures Is That