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)It can lead to conflicts and battles for control between the investing firms
C)Companies have short-term commitment toward foreign market
D)It is generally the most costly method of serving a foreign market from a capital investment standpoint

Question

Quizplus · Accepted Answer

The shared ownership arrangement in a joint venture can lead to conflicts and battles for control between the investing firms if their goals and objectives change or if they take different views as to what the strategy should be.

Which of the Following Is a Disadvantage of Joint Ventures