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Question
Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?
A. Joint ventures with local partners face a high risk of being subjected to adverse government interference.
B. Firms engaged in joint ventures have short-term commitments in the foreign market.
C. Joint ventures do not give a firm tight control over subsidiaries that it might need to realize experience curve or location economies.
D. In many countries, political considerations make joint ventures impractical as an entry mode.
E. Quality control problems arise due to lack of interest of local partners.
Answer
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