Earth-Rite Organic Foods (Scenario)
Earth-Rite Organic Foods Inc. is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $10 billion and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic produce. Earth-Rite is considering a collaborative venture with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Which of the following benefits would Earth-Rite most likely accrue if it entered into a joint venture with the Brazilian grocery store chain?
A) Earth Rite would experience high employee turnover in the home country.
B) Earth Rite would be able to eliminate competition in the foreign markets.
C) Earth Rite would be able to completely eliminate the risk of proprietary knowledge infringement abroad.
D) Earth Rite would have access to the foreign partners' know-how.
Correct Answer:
Verified
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