International joint ventures tend to yield a welfare-increasing market-power effect and a welfare-decreasing cost-reduction effect.

Name: International joint ventures tend to yield a welfare-increasing market-power effect and a welfare-decreasing cost-reduction effect.
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Question

Quizplus · Accepted Answer

International joint ventures can lead to a welfare-increasing cost-reduction effect due to shared resources and expertise, while the market-power effect, which can limit competition, might be welfare-decreasing.

International Joint Ventures Tend to Yield a Welfare-Increasing Market-Power Effect