All of the following are potential advantages of an international joint venture except ?
Correct answer: D. operating at diseconomy-of-scale output levels
- A. sharing research and development cost among corporations
- B. forestalling protectionism against imports
- C. establishing work rules promoting higher labor productivity
- D. operating at diseconomy-of-scale output levels
Explanation
Joint ventures can share research costs, reduce resistance to foreign imports, and improve labor practices or productivity. Operating at diseconomies of scale raises per-unit costs and is therefore not an advantage.
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