Where ownership is divided among several partners, the parents are more likely to delegate the operational running of the IJV to ________.
A) local IJV management
B) parent company management
C) middle managers at the parent company level
D) management teams from the largest company in the joint venture

Question

Quizplus · Accepted Answer

When ownership is divided among several partners in an international joint venture (IJV), the parents are more likely to delegate the operational running of the IJV to local IJV management. This is because local management understands the local market and cultural nuances better than the parent company management or middle managers at the parent company level. The management teams from the largest company in the joint venture may have more power or influence, but they may not be the best choice for operational management. Therefore, option A is the best choice.

Where Ownership Is Divided Among Several Partners, the Parents Are