Joint Venture (JV) is an entry mode in International Business. Which of the following are the…
Technology sharing and conflict over control are disadvantages of international joint ventures. Sharing technology can expose proprietary knowledge, while shared ownership…
Choose your answer
Joint Venture (JV) is an entry mode in International Business. Which of the following are the disadvantages of International Joint Ventures?
a) Most costly method
b) Technology sharing
c) Conflict over control
d) Lack of long-term market presence
Answer and explanation
Correct answer B
Technology sharing and conflict over control are disadvantages of international joint ventures. Sharing technology can expose proprietary knowledge, while shared ownership can create disagreements over decisions; joint ventures can nevertheless provide a lasting market presence and share investment costs.
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Karnataka SET (KSET)