Average: /2 Attempts: 6. International joint ventures Which of the following sta

Question

Average: /2 Attempts: 6. International joint ventures Which of the following statements about a joint venture are correct? Check all that apply. Aa Aa A new joint venture creates welfare gains when it penetrates a new market that neither parent company could penetrate on its own. R&D; activities might be the only goal of an international joint venture. A joint venture requires the creation of a new business firm. Joint ventures are sometimes motivated by local protectionist policies that restrict access to local markets. QNA 3.16 2004-2016 Aplia. All rights reserved © 2013 Cengage Learning except as noted. All rights reserved. Grade It Now Save & Continue Continue without saving

Explanation / Answer

a,b,d

points 1,2 and 4 are correct.

1. a new joint venture creates welfare gains when it penetrates a new market because when two companies joins together there will be less competition and the can give more variety of products to the customers at less prices.

2. research and development might be the only goal of a joint venture because they are proven tools for reducing design and production costs.

4. joint ventures are sometimes done to enter the foreign local market, which the company cannot enter alone because of the trade barriers.the company that wants to enter in the foreign market can go for a joint venture.

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