International joint ventures are like a marriage because ________.
A)the firms cannot be separated into single entities after the merging
B)each firm will have access to all of the others' proprietary technologies and competitively sensitive information
C)the more issues that can be settled before the merger, the less likely it will be to break up
D)each firm will have equal decision-making powers

Question

Quizplus · Accepted Answer

International joint ventures involve the merging of two or more firms from different countries, which is similar to a marriage in terms of the need to establish a good working relationship between the partners. Just like in a marriage, issues that may cause conflict should be settled before the merger to avoid the risk of the venture breaking up. Option A is not entirely accurate because while it may be difficult to separate the entities, it is not impossible. Option B is also inaccurate because joint venture partners may have access to each other's sensitive information based on the terms of the agreement, but not necessarily all proprietary technologies. Option D may be a possible outcome, but it's not always the case, as the decision-making power may depend on various factors such as the amount of capital invested or the level of expertise of each partner.

International Joint Ventures Are Like a Marriage Because ________