In terms of the entry modes into a foreign market, a joint venture doe

QUESTION

In terms of the entry modes into a foreign market, a joint venture does not give an international firm the tight control over subsidiaries that might be required to realize experience curve or location economies

Indicate whether the statement is true or false.

ANSWER

TRUE
A joint venture, a mode of entry into a foreign market, does not give an international firm the tight control over subsidiaries that it might need to realize experience curve or location economies. Nor does it give the firm the tight control over a foreign subsidiary that it might need for engaging in coordinated global attacks against its rivals.