Scenario - Boseman Clothier, Inc

Multiple Choice

Scenario - Boseman Clothier, Inc. Boseman Clothier, Inc. has been in operation for over 75 years.  It is based in South Carolina, USA and is a well-recognized name in the industry.  It produces custom fitted men's suits that are in high demand throughout the world.  The average cost of one of its suits is in excess of five thousand U.S. dollars.  Boseman proudly states it has more customer orders than its one store can fill within the next six months.  With growing demand from overseas, the company has recently decided to open operations in four foreign markets next year. Boseman realizes the potential of this move will generate increased revenues for the company.  One of the options it is contemplating is exploring forming an international joint venture.  Boseman is also entertaining the thought of opening operations differently in each of the four new foreign markets.  The company feels the use of different strategies may increase its odds of generating profits in each different market. Boseman Clothier, Inc. has decided to begin international operations using an international joint venture.  Which one of the following is not one of the expectations from this type of entry into the foreign market arena?

A) The joint venture partners will have shared company equity
B) The profits earned will be shared with the joint venture partner
C) The increased risk from operating abroad will be shared with the joint venture partner
D) Use of joint production and distribution will help to increase market share
E) Boseman will maintain all decision making rights in the foreign market