Explain what is the problem behind a majority joint venture, Ask an Expert

Management Studies

1. In order for a product to receive preferential treatment under US Free Trade agreements, what percent of the product value must be derived from the US?

A) 100%
B) 33%
C) 67%
D) 10%
E) 50%

2. What is the problem behind a majority joint venture (JV) partner always having both the higher equity and greater management control?

a. Formal institutions and legal regulations prohibit it.
b. Joint ventures only exist when one party brings the equity and the other brings the organization
c. The local minority party may resent the equity/management dominance.
d. All of these answers

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Business Management, Management Studies

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