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Which two of the following are advantages of a joint venture as a global market-entry strategy?

A. The company has no control over the product and its marketing in the foreign country.
B. An international partner can provide financial or managerial support.
C. A foreign government may require or encourage a local partnership.
D. It is the most expensive option for marketing products in another country.

1 Answer

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Final answer:

Two advantages of a joint venture for global market-entry are leveraging a local partner's support and meeting government requirements for local partnerships. These facilitate market navigation and local resource access.

Step-by-step explanation:

The advantages of a joint venture as a global market-entry strategy include the ability to leverage an international partner's financial or managerial support, and local partnerships that may be encouraged or required by foreign governments. Engaging in a joint venture can help a company navigate the complexities of a new market by collaborating with a local entity that understands the market dynamics. Additionally, joint ventures can facilitate access to local resources which may not be readily available to foreign companies. Option B lays out the advantage that an international partner can, indeed, provide financial or managerial support which can be critical when entering a new market. Option C speaks to the scenario where a foreign government may encourage or require a local partnership, which can be advantageous to navigate local regulations and market preferences.

Contrarily, Option A which states that the company has no control over the product and its marketing in the foreign country, is not an advantage but rather a potential downside of joint ventures. And Option D, suggesting that it is the most expensive option is incorrect; joint ventures can often be cost-saving as they spread out risks and investments.

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