Which of the following is NOT an advantage to a joint venture?
A) Possible loss of opportunity to enter the foreign market with FDI later.
B) The local partner understands the customs and mores of the foreign market.
C) The local partner can provide competent management at many levels.
D) May be a realistic alternative when 100% foreign ownership is not allowed.

Question

Quizplus · Accepted Answer

The possible loss of opportunity to enter the foreign market with FDI later is actually a disadvantage, not an advantage, of a joint venture. The other options: B) the local partner's understanding of the customs and mores of the foreign market, C) the local partner's ability to provide competent management, and D) joint ventures as a realistic alternative when 100% foreign ownership is not allowed, are all advantages of a joint venture.

Which of the Following Is NOT an Advantage to a Joint