Understanding International Joint Ventures for Global Expansion

Academic Report

EXECUTIVE SUMMARY
At the time of effective growth of globalisation, there are various concerns which are
related with suitable benefits. For this, they tends to brought essential changes for the segments
of human life and global business which is a specific area by having effective contribution. For
this, organisations tends to have presence at the global level and make their position for business
plan by undertaking the suitable trends at the global level rather than domestic market. Besides
from this, prominent expansion at global level undertake ventures for the market entry methods
including joint venture. Hence, the overall discussion is about joint venture and effective market
entry tools for the global business environment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Understanding regarding the formation of international joint ventures and the
internationalisation/globalisation process...................................................................................4
Analyse the decision making process by determining the use of international joint ventures....5
Demonstrate the understanding of international joint venture for global expansion..................6
Critically assess the benefits and challenges for the use of international joint ventures in
foreign market entry....................................................................................................................7
ANALYSIS AND DISCUSSION...................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International business depict the trade of products and services and effectively undertake
knowledge across the national borders and at the global scale. It prominently undertake cross
border transactions of suitable commodities and services among two or more countries. For this,
suitable transactions of economic resources undertake skills, people and capital for the purpose
of international development of the presence of physical goods including finance, insurance,
banking and so on. In terms of organising business overseas, organisations tends to develop
separate national markets at the global area and effectively undertake reduction of barriers in
order to make cross border trade easier (Aguilera and Grøgaard, 2019). Along with this, it also
undertake technological change, specific development for the communication, transportation and
information processing. In regard of this, the report tends to cover the prominent information
about the international business and joint ventures which are useful for them in terms of effective
expansion in foreign market. Moreover, it also critically assess the benefits and challenges for
the use of international joint ventures in foreign market entry.
LITERATURE REVIEW
Understanding regarding the formation of international joint ventures and the
internationalisation/globalisation process
According to Linhart F., (2014), International joint venture occurs only when two
businesses are depends on the two or more nations undertaking the suitable form of partnership.
For this, company tends to explore international trade without undertaking suitable
responsibilities for the cross border business transactions in order to opt and form joint venture
with foreign company who tends to have already successful image in market. Moreover,
international investors also tends to enter into the market undertaking joint venture in order
eliminate risk that occur from the acquisition of business. Along with this, joint venture is the
suitable collaboration among the international and domestic organisation and also tends to
collaborate towards the share of rights, invest capital and also tends to handle their share in
company (Peterson, Arregle and Martin, 2020). Along with this, it also tends to maintain
professionalism among the new business in order to take entry for the several components of
work life and regulatory violation. Furthermore, joint venture also require effective responsibility