Firms engaging in _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions,culture,language,political systems,and business systems.

Question

Quizplus · Accepted Answer

Joint ventures involve the establishment of a new legal entity with a local partner, enabling the foreign firm to benefit from the partner's knowledge and expertise in the host country's competitive conditions, culture, language, political systems, and business systems. This can help the foreign firm navigate the unique challenges of doing business in a foreign market and increase the chances of success. Turnkey projects, greenfield investments, and licensing arrangements do not involve the same level of collaboration with a local partner.

Firms Engaging in _____ with a Local Company Can Benefit