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Which of the Following Is an Advantage of Establishing a Joint

Question 61

Multiple Choice

Which of the following is an advantage of establishing a joint venture?


A) Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference.
B) Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies.
C) When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner.
D) The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc.

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