International Factor Movements and Multinational Enterprises Graded Assignment |

Question

International Factor Movements and Multinational Enterprises Graded Assignment | Read Chapter 9 | Back to Assignment Due Friday 11.10.17 at 11:45 PM Attempts: Average: 12 6. International joint ventures Aa Aa Which of the following statements about a joint venture are correct? Check all that apply. Dividing joint-venture ownership equally prevents deadlocks in decision making. Joint ventures help to prevent protectionism against imports. Joint ventures lessen the distinction between local and foreign production. A joint venture requires merging of two or more existing companies. QNA 3.16 © 2004-2016 Apia. All rights reserved. © 2013 Cengage Learning except as noted. All rights reserved. Grade It Now Save & Continue Continue without saving Copyright NoticesTerms of Use Privacy Notice Security Notice Accessibility

Explanation / Answer

Options A, B, C and D are correct.

A because when ownership is divided equally between the two parties, each have their own management strateties which often clashes and creates a deadlock. This is one of the disadvantages of joint venture.

B because international joint ventures actually forestall the protectionism against imports. It is unable to differentiate who produced what and imported/exported what.

C because their is joint production when there is international joint venture. So unable to distinguish between the two.

D because two or more existing firms come together to form a third firm.

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