Joint ventures lead to losses in national welfare when the newly established business adds to preexisting production capacity and fosters additional competition.

Question

Quizplus · Accepted Answer

The statement is false. Joint ventures can lead to gains in national welfare if they result in increased efficiency and productivity. It is only when joint ventures lead to the creation of excess production capacity and increased competition that they may lead to losses in national welfare.

Joint Ventures Lead to Losses in National Welfare When the Newly