Ch9 Review Questions - Chapter 9 Review Questions 2 Vunatan Mongkolkanjansriri What are the possible drawbacks of 50-50 joint ventures Ans The

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Chapter 9 Vunatan Mongkolkanjansriri Review Questions 2. What are the possible drawbacks of 50-50 joint ventures ? Ans. The drawbacks of 50-50 joint ventures are - MNCs are restricted from full control, which are financial control, marketing control and other critical operations, on the investment form the local governments. - Business partners in the operations can become future competitors. - Lack of trust and mutual conflicts (such as strategies, resource allocation, transfer pri- cing, ownership of critical asset like technology and brand names) among joint venture abstruct the operation. - Cultural strains between partners often spur mistrust and mutual conflict, sometimes it make bad situation even worse. 3. Draw up a list of the respective Pros and Cons of licensing. Ans. Pros and Cons of licensing are Pros - Good chance for small companies that lack the resources and the wherewithal to in- vest in foreign facilities. - Licensing allows the licensor to navigate around import barriers or get access to mar- kets that are completely close to imports. - Licensing helps lowering the exposures to political or economic instability in the foreign markets. -
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This note was uploaded on 05/09/2010 for the course BUSINESS A DBA 605 taught by Professor Prof.c.rhee during the Spring '10 term at Pacific States.

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Ch9 Review Questions - Chapter 9 Review Questions 2 Vunatan Mongkolkanjansriri What are the possible drawbacks of 50-50 joint ventures Ans The

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