Joint-Venture is a preferred mode of foreign-direct investment if

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Quizplus · Accepted Answer

All of the options listed are valid reasons for why a Joint-Venture may be a preferred mode of foreign-direct investment. A Joint-Venture allows for a company to enter into a market with a local partner who has knowledge of the regulatory environment and customer base, which can help mitigate country and Greenfield start-up risks. Additionally, in some countries, a Joint-Venture may be the only allowable mode of entrance due to government restrictions.

Joint-Venture Is a Preferred Mode of Foreign-Direct Investment If