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Question
Which one of the following modes of entry requires higher level of risks?
Which one of the following modes of entry requires higher level of risks?
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Solution
The correct option is D Joint venture
Foreign firms entering join ventures share the technology and trade secrets with the local firms in the foreign countries which always runs a risk of such a technology and secrets being disclosed to other apart from the risk associated with entry into foreign markets with unknown business enviornment.
Foreign firms entering join ventures share the technology and trade secrets with the local firms in the foreign countries which always runs a risk of such a technology and secrets being disclosed to other apart from the risk associated with entry into foreign markets with unknown business enviornment.
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