A Disadvantage of a Joint Venture Arrangement When Entering a New

Multiple Choice

A disadvantage of a joint venture arrangement when entering a new global market is that

A) intermediaries have the potential to harm the brand.
B) the firm entering the foreign market must pay royalties to the other firm.
C) one of the companies forgoes control over its product.
D) the two companies may disagree about policies.
E) this method is likely to provide the fewest subsidies from the host country's government.