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Joint Venture

1.) Discuss the advantages and disadvantages of entering a market with a local joint venture partner.

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1.) Discuss the advantages and disadvantages of entering a market with a local joint venture partner.

According to WTO, 2009, joint ventures are useful and necessary to achieve access in new markets. The participants in a joint venture take clear equity positions with clear lines of management control over decisions are shown for the purpose of achieving success. Even thought joint ventures have a high failure rate; companies engaging in it enjoy the following advantages:

1. Companies can share technology for the production and delivery of innovative goods and services. By doing such, complementary IP assets are also being shared and as a result, both companies save on costs while enriching their knowledge and ideas.
2. It can be used to reduce political friction and improve acceptability of company in the locality. Joint ventures can greatly help introduce the new company to the new area as it can easily gain acceptance of its products by local customers and middlemen.
3. It is an effective way to obtain the necessary resources needed in the new market. It is an effective ...

Solution Summary

The solution discusses the advantages and disadvantages of entering a market with a local joint venture partner. References are included.

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