When negotiating international joint venture agreements, the international firms must be aware of which of the following except:
A) Equity structure, who controls the venture, is more important than the building of mutual trust and respect
B) Protection of proprietary technologies
C) Establishing common policies on financial objectives and strategic goals
D) Ensuring that both sides provide inputs to resolve operating problems
E) All are factors to which international firms should pay attention

Question

Quizplus · Accepted Answer

The correct answer is A because building mutual trust and respect is equally, if not more, important than the equity structure in the success of international joint ventures. The other options (B, C, D) are indeed factors that international firms must be aware of when negotiating joint venture agreements.

When Negotiating International Joint Venture Agreements, the International Firms Must