Asked by Jesus Armenta on Jul 14, 2024
Verified
What is the primary disadvantage of a joint venture?
A) lack of local market knowledge
B) imbalanced sharing of risks
C) ineffective standards
D) differences in culture
Joint Venture
A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.
Local Market Knowledge
Understanding of the specific dynamics, consumer behaviors, and competitive landscape in a particular geographic area.
Cultural Differences
Refers to the varying beliefs, values, behaviors, and practices observed among people from different backgrounds.
- Examine how various market entry tactics affect a company's resources and associated risks.
Verified Answer
HP
Haley PierceJul 18, 2024
Final Answer :
D
Explanation :
The primary disadvantage of a joint venture often lies in the differences in culture between the partnering companies. These cultural differences can lead to misunderstandings, conflicts, and inefficiencies in how the joint venture operates.
Learning Objectives
- Examine how various market entry tactics affect a company's resources and associated risks.