Question

Joint venture increases 'Entry Risk' for any foreign company. (State with reason whether the given statement is true or false)

Answer 1

Joint venture increases 'Entry Risk' for any foreign company.

This is because a foreign company entering into business for joint venture can develop complexities if the resources and competencies are not in alignment or complement one another.

Building any business relationship takes time and effort.

Unclear goals, ineffective communications, difference of partner expertise, asset or investment, multicultural background, poor leadership, and collaboration increase risks for foreign companies.