INTERNATIONAL JOINT VENTURE-SPAR AUSTRALIA LIMITED CASE STUDY 4IntroductionOver the past decades, the demands of managing the international businesseshave greatly changed. This phenomenon has influenced the strategies of managing theinternational ventures across the borders[CITATION Dur14 \p 48 \l 1033 ]. The goal of everybusiness is to develop, grow and expand with the aim of serving wide market coverage.As a result of the urge to reach huge market has forced businesses target extend theiroperations both in the local and international markets. Business operating in theinternational markets faces a number challenges such as adhering to the host countrytrade laws, hazardous weather conditions, lack of the right labor, fluctuating exchangerates, resistance by customers to have standardized global products and services, hostnation based differentiated approaches, flexible manufacturing technology, and others.To manage these challenges effectively it calls for the proper management of theinternational business operations. The International joint venture is one of the mostcommon strategies used by the business to operate in the international arena[CITATIONRom16 \p 20 \l 1033 ]. Ideally, joint venture partnership occurs when two business in twodifferent or more countries agree to carry out business[ CITATION LeN09 \l 1033 ]. Thisapproach helps the company to explore international business without undertaking thefull responsibilities associated with the international business operations. Instead, thelarge responsibility of overseeing business operations in the international market is leftto the host country company. There are several and critical reasons why businesses may prefer to enter intothe international joint ventures. Factors such as lower taxes, favorable currencyexchange rates and lowering of the manufacturing costs often make all the internationaljoint ventures beneficial[CITATION LeN09 \p 61 \l 1033 ]. However, despite having a lotbenefits in the international ventures, there are risks of entering foreign markets usingthe same strategy. Usually, the international joint ventures permit multinationalcorporations to reduce their risk while expanding in the global market with a goal ofserving the new market and new customers as well. The companies in the host countrymay be unable to access local market effectively because of the lack of the appropriatetechnology, right skills or marketing strategies. However, when they corporate withanother foreign country with the goal of establishing a joint venture they can be provided

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