Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?
A) A foreign firm shares the costs and risks of development with its local partner.
B) A foreign firm can easily maintain control over how its technological know-how is used by a local partner.
C) There is less cause for friction and conflict between partners involved in a joint venture.
D) Joint ventures are ideal to maintain tight control over subsidiaries.
E) Joint ventures benefit firms lacking the capital to expand operations overseas.

Question

Quizplus · Accepted Answer

Joint ventures allow a foreign firm to share the costs and risks of entering a new market with a local partner. This can be an advantage over other modes of entry, such as wholly-owned subsidiaries, where the foreign firm bears all of the costs and risks themselves.

Which of the Following Is an Advantage of Joint Ventures