Which of the following is a disadvantage of joint ventures?
A)Joint ventures with local partners face a high risk of being subject to various forms of adverse government interference
B)Companies have short-term commitment toward foreign market
C)It does not give a firm tight control over subsidiaries
D)It is generally the most costly method of serving a foreign market from a capital investment standpoint

Question

Quizplus · Accepted Answer

A joint venture does not give a firm the tight control over subsidiaries that it might need to realize experience curve or location economies.Nor does it give a firm the tight control over a foreign subsidiary that it might need for engaging in coordinated global attacks against its rivals.

Which of the Following Is a Disadvantage of Joint Ventures