One of the disadvantages of global joint ventures is that, like licensing and franchising, they help companies avoid tariff and nontariff barriers to entry.

Question

Quizplus · Accepted Answer

Global joint ventures often involve establishing a presence in a foreign country, which can expose companies to tariff and nontariff barriers rather than avoiding them. Licensing and franchising can sometimes help in avoiding these barriers by leveraging local partners, but joint ventures typically involve more direct investment and operations in the foreign market.

One of the Disadvantages of Global Joint Ventures Is That