Like licensing, joint venture partners can turn into competitors. But in the joint venture situation
A)the competitor is rarely a threat.
B)the competitor is not protected by the government.
C)the international firm may be able to control the supply chain preventing access to equipment that the competitor needs.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Joint venture partners can turn into viable competitors that know the firm's operations and competitive strategies. In this case, the local partner will become a formidable competitor. Because many joint ventures are between international firms and state-owned companies, the new competitor is likely to be protected by the government. The international firm can fight against new competitors through controls and agreements with the supply chain and distributors that will prevent access to equipment and vital materials that the competitor requires.

Like Licensing, Joint Venture Partners Can Turn into Competitors