Joint Venture as a Market Entry and Expansion Tool in Global Business Environment

International Business

EXECUTIVE SUMMARY
During development of globalisation there were several concerns regarding its advantages.
However, it has brought important changes in all segments of human life and International
business is one area within it involved and contributed mainly. Organisations across the globe
are presently framing their business plan majorly after including the trends in global market
instead of domestic market. Regarding expansion and global operation, the venture considers
market entry method like joint venture. The core of these tools is to develop the business growth
option in several nations as much as possible. The whole discussion is about joint venture as a
market entry and expansion tool in global business environment.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
ANALYSIS AND DISCUSSION...................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
International business is generally trade carried on across or beyond the geographical
boundary of the nation. When an establishment make expansion and carry on trade in diverse
nations or even more than one nation, it is involved in global business. It can be either opening
their own branch in the other nation or by the means of mergers and acquisitions. Carrying on
global business is not an easier job and it suffers numerous complexities as the culture of the
countries are differ and they way they are operating business also make differentiation on the
base of beliefs and customs so in case of global mergers and acquisitions these factor come in
force where an establishment plans to obtain an enterprise in another nation (Bhattarai and
Kucheryavyy, 2020). Also, the business enterprises consider different market strategies or
methods like partnership, merger, joint venture etc. in term of running their business in at
international scale. Joint venture is crucial tools which support organisations in perform their
business operations and actions with less risk. This written report will explain about the business
practices and how they outlined by macro environment forces as well as elements of
international environment. Further, it will discuss about international trade pattern, market
selection tool, market entry methods, method of risk minimisation and the framework to
workplace experience. Moreover, it will briefly describe the joint venture as a tool of market
entry and business expansion with its suitability, pros and challenges.
LITERATURE REVIEW
The motivations behind the formation of International joint ventures and in the
internationalisation/globalisation process
A joint venture is collaboration between a home and International organisation. Both
collaborators invest capital, share rights, and share handling of organisation. Basically the
international collaborator maintains professionalism about the new business, its contacts and
system, and entry to other in-country components of work like real-estate and regulatory
violation. Joint ventures need a huge responsibility from enterprises than other techniques,
because they are dangerous, and less workable (Dangi and et. al., 2018). Joint ventures may
bear tax benefits in many nations, especially where international businesses are taxed at higher
rates than local businesses. Few nations demand all business ventures to be at least fractionally
owned by local business collaborators. Joint ventures may also extend to various nations.
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