International Management

Ans #1 - Joint Ventures

More and more firms are using joint ventures as opposed to fully owned subsidiary because the former provides a certain balance between risk and returns, whereas, the latter is perceived as a “high risk, high return” strategy. Furthermore, many developing countries, which provide the most attractive avenues for investment, do not fully welcome foreign firms, but they have encouraged joint ventures with local firms since the same ensures that at least some wealth generated through the venture remains within the country. Moreover, joint ventures with local firms allow organizations to use the information, networks, experience, distribution ...