All of the following are typical reasons firms enter equity joint ventures except ________.

Question

Quizplus · Accepted Answer

Reason C is incorrect because it describes a motivation for a local firm wanting to expand abroad, which is not typically a reason for entering into an equity joint venture. Equity joint ventures are usually formed for reasons such as gaining access to a foreign market, capital constraints of a local partner, or needing assistance with navigating the host country's regulatory and cultural environment. These ventures involve collaboration between a local and a foreign firm, where both parties bring their own strengths and resources to the partnership.

All of the Following Are Typical Reasons Firms Enter Equity