In selecting joint venture partners in a foreign country, a company should do all of the following EXCEPT:
A) choose a partner with shared interests in meeting customer needs.
B) choose a partner that is a new entrant to your firm's line of business.
C) choose a partner with a strong local market for its own products.
D) choose a partner with future expansion possibilities.
E) choose a partner with good profit potential.

Question

Quizplus · Accepted Answer

Choosing a partner that is a new entrant to your firm's line of business might not bring the necessary experience or market knowledge needed for the joint venture to succeed. It's generally more advantageous to partner with companies that have established expertise and a solid presence in the relevant sector.

In Selecting Joint Venture Partners in a Foreign Country, a Company