A joint-venture is one of the equity-based entry modes where one firm partners with another to establish a new entity in a foreign market. While there are several advantages of this entry mode including access to resources of the partner, there are certain disadvantages such as the risk of losing control to the partner. The key success factors for a joint-venture includes the followingGroup of answer choicesability to get local acceptancestrategic fit and complementarity with partnerrepatriable profitsquality control of partner firm

Which of the following is a disadvantage of a joint venture?Multiple choice question.The government is typically overbearing in terms of support and guidance.Knowledge shared with the new partner could be misappropriated by opportunistic behavior.Strong ties, trust, and commitment develop between the partners.Control over partner selection and alliance formation is essentially nonexistent.

The most common type of joint venture isMultiple Choicebetween two or more private sector companies.an industry-university agreement.created for cooperative research.international joint ventures.

Joint ventures are cooperative arrangementsthat operates for the benefit of the co-owners or parent companies.Select one:TrueFalse

What major advantage does a foreign joint venture have?Multiple ChoiceOverall risk is significantly reduced since foreign distributors essentially buy the product and market it.None of the answers are correct.It allows full control over the operation by the business originally seeking to expand internationally.No equity is exchanged in the joint venture, so no ownership is required in the new venture.It allows access to the international market with a partner who has knowledge of the market.

__________ is where two or more firms develop a contractual relationship to share some of their resources to come up with a competitive advantage.Select one:a.Joint ventureb.Integration alliancec.Nonequity strategic allianced.Equity strategic allianceClear my choice