Which of the following is an advantage of joint ventures as a mode of

QUESTION

Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?

A. The foreign firm benefits from a local partner’s knowledge of the host country.

B. The foreign firm can protect its technology from being appropriated by its local partner.

C. There is less cause for friction and conflict between the foreign and local partners.

D. It gives a firm tight control over subsidiaries, which enables it to realize experience curve or location economies.

E. The foreign firm does not have to bear any development costs and risks associated with opening a foreign market.

ANSWER

A