Question

Which one of the following statements is most correct about the advantages of a joint venture...

Which one of the following statements is most correct about the advantages of a joint venture as compared to a greenfield investment?

Political risk is eliminated because of a local partner

The local partner's contacts and reputation provide easier access to host country's capital markets

Financial disclosure between joint venture partners is always transparent

Political risk is eliminated because of a local partner AND The local partner's contacts and reputation provide easier access to host country s capital markets

Local and foreign partners may have may disagree on strategic and financing issues
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

OPTION B-----The local partner's contacts and reputation provide easier access to host country's capital markets----------ANSWER

A joint venture may enable companies to enter a new market very quickly as all relevant regulations and logisics are taken care of by the local partner.

All other options are wrong since;;;-

option A---- Political risk is reduced but not eliminated

Option C---Parties to Joint venture mange their own finances, operates as separate legal entity

Option D--- Since Political risk can't be eliminated wholly

Option E- Both parties work in harmony

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements is NOT true about strategic alliances? Strategic alliances refer to cooperative...
Which of the following statements is NOT true about strategic alliances? Strategic alliances refer to cooperative agreements between potential or actual competitors. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Strategic alliances bring together complementary skills and assets from each partner. Joint venture is not a type of strategic alliances. As compared to exporting and licensing, FDI may be more expensive and risky. True False Which of the following is not...
Which one of the following statements about swaps is correct? Select one: a. Comparative advantages in...
Which one of the following statements about swaps is correct? Select one: a. Comparative advantages in debt markets lead to possibility of an interest rate swap b. Only settlement risk is evident in swap contracts since clearing houses use marking-to-market approach to eliminate the credit risk c. A swap is a theoretical concept because efficient markets eliminate all possibilities of arbitrage d. Vanilla swap assumes a swap of a series of two floating interest rate payments
26.Which of the following are duties that partners owe the partnership? Select all that apply. A....
26.Which of the following are duties that partners owe the partnership? Select all that apply. A. Duty of kindness. B. Duty of loyalty C. Duty of mainenance. D. Duty of faith and fair dealing. E. Duty of non-competition. F. Duty of sound business judgment. G. Duty to inform. H. Call of duty. 27.Select the best answer to complete the following phrase: Partnership property is owned by A. the partnership itself. B. all partners equally. C. the individual partner who provided...
Which one of the following statements about inflation is correct? A. The real rate of return...
Which one of the following statements about inflation is correct? A. The real rate of return accurately indicates how an investment opportunity will change the investor's purchasing power. B. The greater the inflation rate is, the stronger the purchasing power of a currency becomes. C. Deflation is highly desired because it immediately stimulates consumption in an economy. D. When the expected inflation increases, the nominal interest rates decline. Which of the following statements about capital budgeting tools are correct? I....
Which of the following statements concerning common stock and the investment banking process is NOT CORRECT?...
Which of the following statements concerning common stock and the investment banking process is NOT CORRECT? a. If a firm sells 1,000,000 new shares of Class B stock, the transaction occurs in the primary market. b. Listing a large firm's stock is often considered to be beneficial to stockholders because the increases in liquidity and reputation probably outweigh the additional costs to the firm. c. Stockholders have the right to elect the firm's directors, who in turn select the officers...
passage require analysis and breakdown Our organization has decision-making opportunities heavily affected by the political/governmental climate....
passage require analysis and breakdown Our organization has decision-making opportunities heavily affected by the political/governmental climate. As a healthcare-partnering OPM, our organization partners with private universities and healthcare institutions in order to address the nursing shortage in our country. However, both education and healthcare are highly regulated fields (and with good reason!). These intense regulations are of constant concern and increase risk considerably in many areas of the organization. The greatest concern and risk deal with the initial partnerships forged...
3. Fewer than 1% of all US firms trade outside of the country, and about 60%...
3. Fewer than 1% of all US firms trade outside of the country, and about 60% of those that do so, only trade with one other country. What are some potential reasons for this (all of the following are true, except one): a. Lack of knowledge, data, and experience. b. Most companies in the US are small and medium sized. c. The size of the US consumer market is large, thus companies may be happy to operated domestically only. d....
QUESTION 1 Which of the following factors would most likely lead a firm to adapt its...
QUESTION 1 Which of the following factors would most likely lead a firm to adapt its products for international markets? Exporting as the sole method of international marketing Similar levels of personal income Diverse consumer preference Economies of scale in production 2 points    QUESTION 2 Why would a firm research the marketing infrastructure of a foreign market prior to entry? To determine whether its prices will be competitive. Primarily to understand the role of the media including TV, print,...
1)Which of the following is a driver of globalization? a) Trade barriers and controls on inflows...
1)Which of the following is a driver of globalization? a) Trade barriers and controls on inflows of foreign direct investment b) Weak competition c) Technological advance d) Economies of scale are being exploited to the maximum 2) Globalization is beneficial for firms because a) It protects them against foreign competition b) It cushions them from the effect of events in other countries c) It open up new market opportunities d) It increases the risk and uncertainty of operating in a...
Pick 4 questions to answer that you feel confident that you picked the correct answer Regarding...
Pick 4 questions to answer that you feel confident that you picked the correct answer Regarding setting the budget for integrated marketing communications options: - all-you-can-afford approaches involve setting objectives and then specifying tasks needed to achieve them. - incremental technique tries to set budgets based on other firms’ decisions. - competitive budgeting establishes the same budget year after year. - percentage-of-sales methods tend to ignore the promotion-causes-sales relationship. Many advertisements work primarily through recognition which means - that the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT