Joint ventures are often the chosen form of multinational firm alliances because they ________.
A)provide greater control of proprietary technology
B)increase the level of competition between partner firms
C)enhance the specific skills of the personnel
D)enhance the rewards of the firm

Question

Quizplus · Accepted Answer

Joint ventures allow multinational firms to have greater control over their proprietary technology, as they can share it with their partner firms while still keeping a certain degree of control over its use and distribution. This can be particularly beneficial when entering into a foreign market where expertise and knowledge of the local context is essential. By forming a joint venture, firms can leverage their partner's specific skills and expertise while still retaining some control over the technology they bring to the table. Additionally, joint ventures can provide a way for firms to pool their resources and share the costs and risks of development, which can enhance the rewards of the firm in the long term.

Joint Ventures Are Often the Chosen Form of Multinational Firm