All of the following are potential advantages of an international joint venture EXCEPT
A) sharing research and development costs among corporations.
B) forestalling protectionism against imports.
C) establishing work rules promoting higher labor productivity.
D) operating at diseconomy-of-scale output levels.

Question

Quizplus · Accepted Answer

Operating at diseconomy-of-scale output levels is not an advantage of an international joint venture but rather a disadvantage. It means that the joint venture is not achieving efficient levels of production and may be incurring higher costs than necessary. The other options listed are potential advantages of international joint ventures.

All of the Following Are Potential Advantages of an International