One benefit of a U.S.company entering a joint venture with an international firm is that it
A) reduces the risks of expropriation by host country officials.
B) enhances the policy of the host country's takeover of the firm.
C) promotes skepticism among other countries not involved in the merger.
D) encourages competitors to work with the company.
E) increases revenues by 20%.

Question

Quizplus · Accepted Answer

By entering into a joint venture with an international firm, the U.S. company can reduce the risks of expropriation by host country officials. This is because the international firm may have better connections and relationships with local authorities, making it more difficult for the host country to seize assets or operations of the joint venture. This can protect the U.S. company's investments and intellectual property in the foreign market.

One Benefit of a U