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 government interference.

B. Joint ventures can lead to conflicts and battles for control between the investing firms.

C. Firms engaged in joint ventures have short-term commitments in the foreign market.

D. In many countries, political considerations make joint ventures impractical as an entry mode.

E. The foreign firm cannot rely on its local partner for unbiased information about the host country.

Answer

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