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Question
Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?
A. A foreign firm shares the costs and risks of development with its local partner.
B. A foreign firm can easily maintain control over how its technological know-how is used by a local partner.
C. There is less cause for friction and conflict between partners involved in a joint venture.
D. Joint ventures are ideal to maintain tight control over subsidiaries.
E. Joint ventures benefit firms lacking the capital to expand operations overseas.
Answer
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