One advantage of joint ventures is that

Question

Accepted Answer

the foreign firm benefits from a local partner's knowledge of the host country.

Answer

the foreign firm can protect its technology from being appropriated by its local partner.

Answer

it gives a firm tight control over subsidiaries, which enables it to realize experience curve or location economies.

Answer

the foreign firm does not have to bear any development costs and risks associated with opening a foreign market.

Answer

there is less cause for friction and conflict between the foreign and local partners.

Crowdly