Answer: Shifts in relative bargaining power of venture partners
Choices given are Local partner’s knowledge of host country’s competitive conditions; Giving control of core technology to the foreign partner; Shifts in relative bargaining power of venture partners; Trying to realize location and experience curve economies; and Risk of being subject to adverse government interference.
It is a shift in relative bargaining power of venture partners that triggers the conflict of interest over strategy and goals in joint ventures. Conflicts often arise in ventures between firms of different nationalities.