Collaborating with local partners can help firms to:
A) surmount regulations regarding entry modes that are imposed by the host government
B) obtain essential information about local customers, distribution networks and suppliers
C) circumvent legal obligations
D) both surmount regulations regarding entry modes that are imposed by the host government and obtain essential information about local customers, distribution networks and suppliers

Question

Quizplus · Accepted Answer

Collaborating with local partners can provide firms with knowledge of the local market, culture, and business operations. This can help firms to surmount regulations and legal obligations prescribed by the host government, as well as obtain essential information about local customers, distribution networks, and suppliers. Hence, both option A and B are correct. However, collaborating with local partners should not be used to circumvent legal obligations, as this can lead to negative consequences for the firm and its reputation. Therefore, option C is incorrect.

Collaborating with Local Partners Can Help Firms To