Question

What are three advantages of a joint venture?

O development costs and risks
O local partner's knowledge of the host country
O lowers risk of adverse government respons
O elack of tight control over partner
O receive dividends on shared intellectual property

Answer 1

Three advantages of a joint venture include development cost sharing, local market knowledge, and reduced risk of adverse government response.

Step-by-step explanation:

Three advantages of a joint venture include:

1. Development costs and risks: By forming a joint venture, the costs and risks associated with developing new products or entering new markets can be shared between the partners. This can help reduce financial burden and increase the likelihood of success.
2. Local partner's knowledge of the host country: When entering a foreign market, partnering with a local company can provide valuable insights and understanding of the local culture, consumer behavior, and business practices. This knowledge can be crucial for adapting and tailoring products or services to the local market.
3. Lowers risk of adverse government response: In some countries, governments may favor or give preferential treatment to companies that have local partners. By forming a joint venture with a local company, the risk of facing adverse government responses or regulations may be reduced, improving the chances of success in the market.