Which statement is false regarding joint ventures?
A)Joint ventures are a preferred international entry mode for emerging markets.
B)When a joint venture has a state-owned enterprise as a partner it is assured instant local access.
C)It is typical for joint ventures to take place between an international firm and a state-owned enterprise.
D)Joint ventures are frequently discouraged by local governments because of the monopoly-like power that they wield.

Question

Quizplus · Accepted Answer

Because joint ventures lessen the risk for an international firm and because governments frequently encourage joint ventures in emerging markets, joint ventures are a preferred international entry mode for emerging markets. Joint ventures are encouraged by governments because they provide jobs, technology, and taxable profits for local economies. Furthermore, the joint-venture frequently occurs with a state-owned enterprise which tends to benefit the government and the government's officials.

Which Statement Is False Regarding Joint Ventures