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Essay / Research Paper Abstract
This 14-page paper provides an overview and discussion about international joint ventures, and how parent companies exert control. Bibliography lists 3 sources.
Page Count:
14 pages (~225 words per page)
File: AS43_MTijrparen.rtf
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Unformatted sample text from the term paper:
foreign markets. Certainly, there are methods for these companies to enter international markets; foreign direct investment, for example, is one that some companies use. Another is that of exporting, finding
an agent in the target market, and trusting that entity to sell the product successfully, with the idea that the profits will be split.
Then there is the international joint venture. This partnership across borders looks great in theory; two companies banding together to form an entity that is stronger and mightier
than the competition. Most international joint ventures would have people believe that they are a win-win scenario, in which everyone goes away happy.
Many IJVs do work out and go on to make everyone a great deal of money. But there are also those that fail dismally, leaving behind little but anger, lost
profits and wondering what the heck happened, and how things could fall apart as they did. The latter occurs when parent companies (i.e.,
the partners involved in the joint venture), have little understanding about the role of control in the joint venture. Any partner going into an international joint venture should not only
perform a serious due diligence, but should also have an understanding of control its partner is likely to exhibit when it comes to treating its management team. Knowledge of that
control is probably as valuable as any kind of financial monitoring or human resources studies. Yet many companies going into an IJV dont do this.
In this paper, well discuss the international joint venture, define what it means, how it operates, and how parent companies exhibit control within these structures. Well use, for
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