A disadvantage of entering global competition through a joint venture is that:
A) it often aggravates political issues and incurs protectionist measures.
B) the partner's ideas about local tastes and preferences may interfere with standardized operations.
C) it involves the risk of losing control over technology to the partner.
D) it is the most expensive and risky option for entering a global market.
E) the local partner should bear most of the risks and costs involved.

Question

Quizplus · Accepted Answer

The disadvantages of joint ventures include running the risk of losing control over its technology to the venture partner,as well as conflict over who controls what within a joint venture,which causes many joint ventures to fail.

A Disadvantage of Entering Global Competition Through a Joint Venture