UPS Is Involved in a Joint Venture Agreement with China's

Multiple Choice

UPS is involved in a joint venture agreement with China's largest transportation company Sinotrans Pekair. The Chinese company uses UPS technology and expertise and UPS gets an existing national distribution network. The major disadvantage of such a joint venture is

A) its high opportunity costs.
B) the risk of giving up control of proprietary knowledge to a partner.
C) the problem of differentiating between direct and indirect shared costs.
D) the existence of high trade barriers.