A disadvantage of entering global competition through a joint venture is that
A) It often aggravates political issues and incurs protectionist measures.
B) The partner's ideas about local tastes and preferences may interfere with standardized operations.
C) Conflict over control within joint ventures causes many of them to fail.
D) It is the most expensive and risky option for entering a global market.
E) There is seldom a formal agreement in place covering the joint venture.

Question

Quizplus · Accepted Answer

The disadvantages of joint ventures include running the risk of losing control over its technology to the venture partner, as well as conflict over who controls what within a joint venture, which causes many joint ventures to fail.

A Disadvantage of Entering Global Competition Through a Joint Venture